What are common shares and the pros and cons of issuing common shares

Hello, common stock is a kind of stock that changes with the change of corporate profits, is the most ordinary and basic share in the capital composition of a joint-stock company, and is the basic part of the capital of a joint-stock enterprise. The basic feature of common shares is that their investment income (dividends and dividends) is not agreed upon at the time of purchase, but is determined afterwards based on the operating performance of the issuing company. If the company's operating performance is good, the income of common stock will be high; Conversely, if the operating performance is poor, the return on common stock will be low.

Common stock is the most important and basic share in the capital structure of a joint-stock company, and it is also the most risky share, but it is also the most basic and common one. In China, the Shanghai Stock Exchange and the Shenzhen Stock Exchange are all ordinary shares.

**It is a written certificate of ownership of the share capital issued by the joint-stock company to the investor. The holder is the shareholder of the joint-stock company, which elaborates on the contractual relationship between the company and the shareholders, and clarifies the responsibilities and rights of risk sharing, revenue sharing and corporate management. It is not only a way of raising funds, but also a form of existence of enterprise property rights, representing asset ownership.

The main characteristics of ** are manifested in three aspects: first, it has non-returnability. **As a legal certificate of equity, the holder has the right to participate in the distribution of dividends and exercise shareholder rights in accordance with the regulations, but cannot withdraw the shares halfway to claim back the principal, that is, only "pay interest and dividends, and do not return the principal"; Second, it is risky.

The main difference between original shares and common shares is that the issuer and the purchase** are different. The original shares are generally held by the company's employees or founders, and will be different in different periods of the company's development, and the earlier you buy it, the cheaper it is. As the company grows and the company appreciates, so does the amount of ** purchased.

The common shares you are talking about should be the tradable shares that circulate on the ** exchange after the company is listed, and they need to be purchased on the ** trading platform, and the ** shares that are generally circulated are higher than the original shares. After all, the original shares contain a benefit component of the company.

The original shares are those of the company that were bought before they went public**. Ordinary is a common stock that is outstanding on the market. The difference between them is that after the company is restructured and listed to become a joint-stock company, as long as it starts trading on the Shanghai ** Stock Exchange or the Shenzhen ** Exchange.

**Holders, can get a large increase in investment value. The possibility of losing money is very small.

Common shares are those that have been traded on an exchange. The value of this fluctuates with the listing on the exchange. Its value may increase or depreciate. That is to say, the ordinary ** has ups and downs. That's all.

Original** refers to a company that was issued during the start-up stage of the company or before going public. Our common **trading** refers to the company that is traded in the **market after the company is listed**. The main difference between them is in the level of profit and the length of time they are held.

Difference Between Original Strand and **:

The original shares were issued prior to the company's listing**. In China's ** market,"Original shares"It has always been synonymous with profit and wealth. In the early days of China, in the primary market to the public offering of enterprises to the public, if investors buy hundreds of shares, listed in the future, up to tens of yuan, can make a small fortune, if you buy thousands of shares, you can make a fortune, if the financial strength is strong, buy tens of thousands of shares, hundreds of thousands of shares, listed in the future, the profit is millions.

This is the first pot of gold in China. Now China's newly launched SME share transfer system, commonly known as ***, is a platform for buying original shares.

**It is a certificate of ownership issued by a joint-stock company, and it is a kind of valuable certificate issued by a joint-stock company to each owner as a certificate of shareholding and to obtain dividends and bonuses in order to raise funds. Each share** represents a shareholder's ownership of a basic unit of the business. There is a listed company behind each **.

At the same time, each listed company will issue **.

Each copy of the same category** represents equal ownership of the company. The size of the ownership share of the company owned by each owner depends on the proportion of the number of shares held by the owner in the total share capital of the company.

** It is a component of the capital of a joint-stock company, which can be transferred, bought and sold, and is the main long-term credit instrument in the capital market, but the company cannot be required to return its capital contribution.

Pros:1Enhance the credibility of the company.

2.It can reduce the risk of the company.

3.It can enhance the flexibility of the company's operation.

4.There is no fixed interest burden.

5.There is no fixed maturity date and there is no need to repay.

Shortcoming. 1.The cost of capital is high and high.

2.Easy to decentralize control.

3.It is possible to reduce the level of earnings of the original shareholders.

Extended Materials. Common Stock:

That is, the dividend increases or decreases with the size of the company's profits**. is relative to preferred shares. It is the most important kind of share, the basis of the capital of the stock branch, and the most common form. Shares.

The company's initial issuance** is generally common stock.

Shareholders of common shares are the basic class of owners of shares **** and have the following rights:

1) The right to participate in the operation of the enterprise. Shareholders of ordinary shares generally have the right to attend shareholders' meetings, vote and elect, and can elect the company's board of directors or board of supervisors, so as to have a say in the company's management.

2) Earnings distribution rights and asset distribution rights. Shareholders who sell ordinary shares are entitled to dividends distributed by the company after distributing the company's dividends to the shareholders of preferred shares; In the event of the dissolution or liquidation of the company, it has the right to participate in the distribution of the company's property after the company's property has been detained by the claims of other creditors.

3) Pre-emptive stock options and share transfer rights. Under the pre-emptive share option system, existing shareholders are entitled to maintain their existing percentage ownership of the business. If the company issues additional ordinary**, the existing shareholders have the right of first refusal to purchase the new issuance** in order to maintain their proportional interest in the company, etc.

At the same time, ordinary shareholders bear more risk to the company's business conditions than other types of shareholders. A typical share **** usually has only one type of common stock, if there are more than two common shares, and there are differences in voting rights, profit and asset distribution rights, stock options, etc., then in fact, a part of the common shares has been equated with preferred shares.

Tradable shares** refer to the ** circulated on the Shanghai ** Stock Exchange, Shenzhen ** Exchange and Beijing two corporate stock systems TAQ and NET. Since the China Securities Regulatory Commission was established in October 1992, the first listings before this were approved by each trading system itself. After that, the listing and circulation of all ** Qi Kai will be managed by the China ** Supervision and Administration Commission.

Among the tradable shares, they can be divided into A shares, B shares, corporate shares and overseas listed shares according to different market attributes.

Concept stocks. The difference with ordinary ** is: 1. Different properties. Concept stock index.

** with a special connotation, as opposed to the source key of performance stocks. Performance stocks need to be supported by good performance. The concept stock relies on a certain theme, such as the concept of asset restructuring, the concept of three links, etc.

And this connotation is usually regarded as a stock selection and speculation theme, becoming a hot spot; 2. The characteristics are different. Concept stock is the first term.

As a way to pick stocks. Compared with high-performance stocks, which must be supported by good operating performance, concept stocks are just a combination of relying on the same topic of fission and listing the same type of ** in stock selection. Due to the advertising effect of concept stocks, there is no guarantee of profit.

In the case of the fading of interest rate hike expectations that were widely concerned by the market in the early stage, the macro economy.

The expectation of soft trembling has gradually taken over the market.

Q1: What is common stock?

Q2: What does common stock mean?

Ordinary stock refers to the shares that enjoy ordinary rights in the company's operation and management and the distribution of profits and property, representing the right to claim the profits and residual property of the enterprise after satisfying the requirements of all claims and the claims of the preferred shareholders. At present, the shares traded on the Shanghai and Shenzhen exchanges, all of which are ordinary shares. Holders of common stock** have the following basic rights in proportion to their shares:

1) The right to participate in the company's decision-making. Ordinary shareholders have the right to participate in general meetings of shareholders and have the right to make suggestions, votes and votes, and may also entrust others to exercise their shareholder rights on their behalf.

2) Right to profit distribution. Common shareholders are entitled to dividends from the distribution of the company's profits. Dividends on common stock are not fixed and are determined by the company's state profitability and its distribution policy.

Ordinary shareholders are not entitled to the right to dividends until the preferred shareholders receive a fixed dividend.

3) Pre-emptive stock options. If the company needs to expand and issue additional ordinary shares**, the existing shareholders of the general registration shares have the right to purchase a certain number of new issues** at a specific ** below the market price according to their shareholding ratio, so as to maintain their original proportion of ownership of the enterprise.

4) The right to distribute the remaining assets. When the company goes bankrupt or liquidated, if the company's assets remain after the debts are repaid, the remaining part will be distributed in the order of preferred shareholders first, then common shareholders.

Some stockholders asked me what it means that ordinary shares are Zaozhou? What are the common stocks? Here's some information I've gathered that I hope you find helpful.

Common shares refer to the shares that enjoy ordinary rights in the company's management and profit and distribution of property, representing the right to claim the profits and residual property of the enterprise after satisfying the repayment of all claims and the right to claim the profits and residual property of the preferential shareholders after the right to income and claims, it constitutes the basis of the company's capital, is a basic form of the company, and is also the largest and most important issuance.

The first shares of the company were all ordinary shares traded on the Shanghai and Shenzhen exchanges.

The basic feature of ordinary ** is that the basic investment interests (dividends and bonuses) are not agreed upon at the time of purchase, but are determined after the fact according to the operating volume of the company, the company's operating accumulation is good, the income of ordinary ** business is poor, and the income of ordinary ** is low. Ordinary is the most important and basic bridge in the capital structure of a company, and it is also the most risky, the most basic and common.

Generally speaking, the characteristics of ordinary ** can be summarized as:

1) Shareholders holding ordinary** are entitled to dividends, but they must be distributed after the company pays debts and dividends of preferential**. The dividends of ordinary ** are not fixed, and generally depend on the amount of the company's net profit. In terms of company operation, in the case of increasing profits, ordinary ** can pay more dividends than preferred shares, and the dividend interest rate can exceed 50%, but in the year when the company is not doing well, money can not be obtained, and the book may also be compensated.