The securities market is constantly evolving. Stocks are one of their most common types. In turn, they are divided into different types of shares.
In Russian practice, stocks appeared in the late 80s with the release of the first stocks of labor collectives. They began to produce state, collective, rental enterprises, public organizations. Then they represented a special certificate of the introduction of personal funds on an unlimited basis in order to help in the development of production. So they tried to interest workers in the idea of public leadership. Such shares were not intended for free market circulation. The concept and types of shares have not yet stood out.
On the other hand, enterprises of various subordination, partnerships, banks and business associations have already begun to issue shares of their own enterprises intended for legal entities. These shares were intended for sale on the secondary market. But at that time, interest in them was very low.
Today, various types of shares enjoy the increased attention of interested parties. Now shares are issued not only in documentary, but also in non-documentary form. Documentary shares may be replaced by a certificate. With full payment of all securities, the shareholder may receive one certificate for all acquired shares.
Types of shares and their characteristics. Depending on the ownership order established by them, the types of shares distinguish between registered and bearer. According to the Law “On Joint-Stock Companies”, all securities of a joint-stock company must be registered. The Law “On the Securities Market” gives the right to issue bearer shares in a strictly defined ratio with the standards established by the Federal Commission for the Securities Market.
Named . Their owner must be officially registered in a special registry. In the event of resale of such shares, the data of the new owners must be entered. Such stocks are used to analyze the structure of shareholders in order to stimulate them or vice versa to attract foreign investment.
The registered shares are registered among registered ones; they can be transferred to other owners only if the issuer's permission is obtained. This is necessary to control the composition of shareholders in order to protect the issuer's financial independence.
Bearer . They transfer to another owner after a simple actual transfer.
Depending on the possible size of income, these securities are divided into the following types of shares.
Privileged (preferential). They give the right to receive income in the priority order in the form of dividends, as well as to priority participation in the processes of separation of property of a joint stock company in case of its liquidation. They do not give any casting rights in cases relating to the conduct of business.
These shares are cumulative (in case of unstable financial condition of the company, dividends on them accumulate and can be issued only after the improvement of the financial situation); revocable or repayable (which the joint-stock company can redeem upon the occurrence of special circumstances, for which a premium is paid to the holders of securities).
Ordinary . The income on them depends on the size of the company's profit, its strategy and other factors. Ordinary shares may be non-voting, with voting right, with limited voting right, subordinates.
Since joint stock companies are open and closed , the types of shares differ on this basis. The difference lies in the fact that the shares of the company can be sold by their owners without agreement with other shareholders, and the shares of the company - only after appropriate approval. In addition, CJSC shares are issued only in the form of a closed issue. They are not offered for purchase to an unlimited circle of persons. An open joint stock company may carry out both open and closed issues.
Shares are divided into placed and declared . Securities are called securities already acquired by certain shareholders, declared - issued in addition to those placed.