Business Engineering

An ordinary share gives one vote when resolving issues at a meeting of shareholders and participates in the distribution of net profit after replenishment of reserves and payment of dividends on bonds and preferred shares. The size of the dividend per ordinary share is determined by the general meeting of shareholders and can be increased or decreased depending on the results of the company's financial activities. If the position of the joint-stock company is unstable or the development needs require the attraction of large funds, the dividend on ordinary shares may not be paid, especially in the first years after the establishment of the joint-stock company.

A preference share does not give the right to vote, unless otherwise provided in the charter of a JSC, but unlike an ordinary share, it brings a guaranteed dividend and has an advantage in the distribution of profits and liquidation of the company. The size of the fixed dividend on preferred shares is set upon their issue, and current settlements with holders of preferred shares are made before settlements with holders of common securities

By purchasing shares, the investor receives the following rights:

• Receipt of a part of the distributed profit of the joint-stock company (dividend)
• Participation in the management of a joint stock company
• Receiving part of the value of the assets of a joint stock company upon liquidation
• Acquisition of new shares of this company.
Depending on the rights, shareholders are divided into holders of ordinary and preferred shares.

According to the Regulations on Joint Stock Companies, SHARE is a security issued by a joint stock company and certifying the ownership of a share in the authorized capital of a joint stock company. The issue (placement) of shares is carried out in the following cases:

• Establishment of a joint stock company and placement of shares among its founders
• Privatization of state and municipal enterprises through corporatization and subsequent redemption of shares from the state property fund
• Increase in the size of the initial authorized capital of the joint stock company
Shares are evidence that the shareholder (shareholder) made a contribution to the authorized capital of the JSC. Thus, the shareholders are the collective owners of the property of the company, which ensures that they receive part of the profit from the activities of the joint stock company.