What are shares? Understanding the meaning.
When establishing a company, owners may choose to issue common stock or preferred shares to investors.
Companies issue equity shares to investors in return for capital, which is used to grow and operate the firm. Almost all companies, from small partnerships, LLCs to multinational corporations, issue shares of some kind.
Most companies issue common shares which provide shareholders with a residual claim on the company and its profits. Also providing potential investment growth through both capital gains and dividends.
Common shares also come with voting rights which are giving shareholders more control over the business.
✎ Shares represent equity ownership in a corporation or financial asset, owned by investors who exchange capital in return for these units.
✎ Common shares enable voting rights and possible returns through price appreciation and dividends.
✎ Preferred shares do not offer price appreciation but can be redeemed at an attractive price and offer regular dividends.
✎ Most companies have shares, but only the shares of publicly traded companies are found on stock exchanges.
A Bulgarian legal entity may purchase a foreign legal entity in part or in full. For this purpose, the capital owners of the Bulgarian company must have taken a protocol decision at the general meeting in which their decision to partially or fully buy out the shares of a foreign company is explicitly noted and recorded.
The actual recognition of the transaction for the purchase and sale of the shares of a foreign company is carried out in the country where the company that is being bought is registered.