Stocks Trade as Financial Market Instruments

Stocks are certainly among the best-known financial trade market instruments. Itself shares an ownership interest in the property business, the trade company which has the status of joint stock companies. The registered capital of such trade companies can be divided into any number of shares. The owner of shares is the de facto investor. As an investor expects appreciation of his contribution, the property, either as the trade value of firm growth rates and thus increase the price of their shares, may also expect financial payment for the share of the trade profits from business owned joint-stock company – a dividend. Stock can be listed on the name of the person’s own (shares), or may be exposed to such trade security, property rights which performs the one who delivered it to the General Meeting of the trade company (bearer shares, the owner). Large joint-stock company under strict regulatory conditions may issue its shares publicly traded on stock exchanges. This is done mainly for the purpose of capitalization of the trade company.

Trade company gives its owners (shareholders) share of the property company. The rights and obligations of the owner of shares in addition to the Commercial Code regulates the Securities Act. The shareholder, in addition to other rights and the right to share in the trade profits of stock – on the dividend. Its height is determined each year with regard to the agreed profit general assembly composed of stockholders. The dividend is variable, with as distinguished from the shares of securities with fixed and regular trade income (savings books, term deposits or bonds). In years when farming stock trade company makes a profit, usually exceeds the dividend yield assessment instruments with fixed trade income.

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