Shares

If a stock is, as the current German Stock Corporation Act at a fraction of the share capital. Shares, the rights and obligations, which has a shareholder to the Corporation. Overall, one shares a security which represented the proportion of a society. The stock is clearly different from a stock option, which may exercise the right to buy or sell a stock by unilateral declaration. Under German law, are those companies which break down its share capital into shares and then securitize this share, known as a limited company or partnership limited by shares.

If a corporation is founded, is determined in advance, will be divided into as many shares, the share capital. All shares will be represented in a book or as effective pieces of printed and published. The allocation of a share is called emission. One can share in a company in the form of a stock as par value or securitize share. If there is a nominal share, this corresponds to the nominal value of the shares of the share capital of the companies. The par value shares have no par value fixed their own, they are equivalent to their share capital. From a stock split is called in the allocation of shares in those with a smaller face value. A company involved has the opportunity to its shareholders via dividends on profits. When a dividend is a payment made per share to the respective owners of the stock. The Board proposes the amount of the dividend and the AGM of the Company then the amount decided.

The types of shares are distinguished among other things according to their voting rights in ordinary shares or preference shares, according to their transferability into bearer shares or registered shares after the issue date in young or old stocks and companies by their proportion in nominal value or par value shares.

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