General Shareholders

Posted by John Sommers on 23rd January 2014 in General

However, its buying and selling is only possible after a costly and lengthy examination of authenticity. Risk of fraud, the legislative limitations and high cost of bills in a natural way limiting its spread. Share gives its owner the right to part of the income and capital of the enterprise. Revenues generated from shares are paid usually once a year in dividends, which, however, may not be. HP's dividend payment is sent part of the profits, but if during the reporting period, the company incurred a loss, shareholders will get nothing. Not reach dividends and if the General Shareholders' Meeting decides to send all profits to development. The yield on the shares (both dividends and growth in market value) is not guaranteed. All the risks associated with the purchase of securities, including before the bankruptcy is always the responsibility of the shareholder.

All shares are divided into two basic types: ordinary and preference shares. Common share – is an action that gives the right to own shares of the company and voice in management policy. Common stock brings higher returns than preference, however, and possession of an ordinary share – greater risk, as in the case of bankruptcy debts first paid lenders, bondholders and preferred shares, but only then holders of ordinary shares. Advantages of preferred shares as a rule is a fixed level of dividend payments. Accounting for shares as noted above, the shareholder does not receive at the hands of the security certificate, but only a certificate stating that he is listed in the registry – the list, which contains data on all owners and the number of shares they hold.

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