Shares are securities which are manufactured by joint-stock company without day. The share confirms entering of a share into the share capital or the company authorised capital. The shareholder (the holder of the share) can receive a part of profit of joint-stock company in the form of dividends, can sell shares on a capital market, can participate in management of joint-stock company and has the right to a property share at joint-stock company liquidation.
Buying shares, the shareholder becomes the co-owner of joint-stock company. Shares can be exclusive and ordinary. The holder of preference shares has no vote, but has the fixed dividends and a priority at payments under shares. The holder of common shares can participate in management of joint-stock company and in distribution of profit of joint-stock company. The joint-stock company board of directors defines the size of dividends under shares and offers on general meeting of shareholders.
Besides, that the stock buyer becomes the co-owner of the enterprise and can secure the profit in the form of dividends, it also can receive the income of stock value growth. In the share its face-value, the joint-stock company name, a stock number, a share kind, the size of an authorised capital stock, quantity of manufactured shares and a term to maturity of dividends routinely is underlined. The share face-value shows only a nominal price of the share at the moment of issue and the size of the authorised capital the joint-stock company having on one share. The real price of shares is defined by the market.
Investments of money into shares, are routinely more profitable, than investments in bank on the deposit.