A stock is a security (certificate), which is a paper proof of your property rights in the company, and it also gives you the opportunity to receive dividends in the event of profitable company activities and provides the right to vote at the general meetings of the founders.
Shares of companies have two types. These are ordinary and privileged. The main advantage of the latter is that their owner has the right to receive increased dividends. Also, their owners have an advantage in the priority receipt of the property of the enterprise during its liquidation. But these stocks have a drawback. The owners of such voting rights are deprived and cannot vote at the general meetings of the founders. Ordinary shares do not have any advantages in receiving dividend payments, in dividing the property of an enterprise during its liquidation, but they have a guaranteed voting right. Therefore, as a rule, large shareholders tend to buy a controlling or at least a blocking stake.
A block of shares, comprising a total of fifty-one percent, is a control. With a large number of founders in the company, it can be estimated at twenty-five percent.
Evaluation of a controlling stake is crucial for any investor who wants to acquire them. Moreover, their profitability can be determined using various methods. At the same time, the most important parameters for their assessment are the following: liquidity of shares, their nominal and current value, the percentage of the company's profitability for two, three reporting years and, of course, future prospects.
A controlling stake and their correct assessment guarantees the investor a good return on investment. A controlling stake provides the opportunity to almost single-handedly manage the enterprise. Here you can add additional opportunities acquired by paying dividends.
Having a controlling stake, the investor can personally influence the production process, directly participating in it, choosing suppliers, consumers. Therefore, many investors turn to the best consulting agencies to evaluate the company 's shares . As a rule, the services of such agencies are not cheaply priced and can reach forty percent of the face value of securities.
Summarize. Evaluation of a controlling stake is very important when buying. Moreover, this statement is true for any major investor . A controlling stake in the enterprise represents the largest share of shares concentrated in one large shareholder and giving it the possibility of dominant and almost sole management.
This moment is sometimes the main component for the successful development of the enterprise. After all, not all founders can be well versed in the management process, but they have votes that can become decisive and give a numerical superiority in making economic decisions that are not justified at the enterprise. Therefore, not all organizations are developing equally successfully. Many of them are barely gaining sales volumes, the proceeds of which only cover the expenses of the enterprise itself. And it’s not about profit at all.
But there are other examples of companies whose shares are constantly in price, are sold in large stock markets, and have good liquidity in the stock market. And, as a rule, they are headed by good managers who have a controlling stake in their hands. For example, these are well-known Russian companies, such as LUKOIL or Sberbank. Their shares not only have high liquidity in the market, but quotes are steadily growing. Moreover, the companies' plans include an increase in dividend payments up to thirty percent. And this is already interesting for all founders and investors who want to purchase these shares.