Concepts and features of stocks

With the deepening of the reform of the economic system, China's stock market is also constantly developing and improving, and the number of investors participating in Stock market investment is increasing. Stock market investment has become a financial means that people are willing to take risks, stocks naturally become a hot topic for everyone. What is a stock? A stock is short for a stock certificate. It is a marketable securities issued by a stock company to shareholders for raising funds as a stock ownership credential and for receiving dividends and dividends. Each share represents a basic unit of ownership of the enterprise. A stock is a part of the capital of a joint-stock company. It can be transferred, traded, or mortgaged. It is the main long-term credit tool of the capital market. The stock has three functions. (1) A stock is a proof of capital contribution. When a natural person or legal person shares an investment in a joint stock company limited, the stock can be obtained as a credential for capital contribution; (2) the holder of a stock proves his shareholder identity by virtue of the stock, participates in the shareholders' meeting of the Stock Company, and expresses his opinion on the operation of the stock company; (3) the stock holder obtains certain economic benefits by virtue of the profit distribution of the stock participating companies, which is usually referred to as dividends. As a type of securities, stocks have the following features: 1. Stable stock investment is a long-term investment with no deadline. Once a stock is bought, as long as the stock issuing company exists, no stock holder can withdraw the stock, that is, it cannot request to withdraw the principal from the stock issuing company. Similarly, the shareholder's identity and rights and interests cannot be changed, but he can sell the shares in the stock exchange market so that the shares can be transferred to other investors to reclaim his original investment. 2. risk any type of investment is risky, and stock investment is no exception. Whether stock investors can get the expected return depends on the company's profit first. If the company goes bankrupt, it may be lost. Second, the stock is used as the transaction object, just like a product, it has its own price. In addition to the operating status of an enterprise, the stock price is also subject to economic, political, social, and even man-made factors, and is constantly changing, the ups and downs also happen from time to time. Although fluctuations in the stock price in the stock market will not affect the operating performance of listed companies, thus affecting dividends and dividends, the devaluation of the stock will still cause some losses to investors. Therefore, you must be cautious when entering the market. 3. The title holder has the right and obligation to participate in the profit distribution and bear limited liability of the joint stock company. According to the provisions of the Company Law, the holder of a stock is a shareholder of a joint stock company limited. He has the right or use his/her agent to attend the shareholders' meeting, elect the board of directors, and participate in the company's business decision-making. The size of shareholder power depends on the amount of stock occupied. Shareholders who hold shares generally have the right to participate in the general meeting of shareholders of the company and have the right to vote. In a sense, they can also be seen as the right to participate in the operation. Shareholders also have the right to participate in the profit distribution of the company, it can be called the Right of interest distribution. Shareholders may receive dividends and claims and liabilities from the joint stock company based on their shares. When the company is dissolved or broke, the shareholders shall assume limited liability to the company, and the shareholders shall assume limited liability to the creditor based on the proportion of the shares they hold. After the creditor's debt is paid off, the shareholders of the preferred shares and common shares may also pay off (I .e., claim) the remaining assets to the company based on the proportion of the shares they hold. However, the shareholders of the preferred shares should take precedence over the ordinary shares, ordinary shares have the right to recover from service only when there are still remaining assets after the claim of the preferred shares. 4. A liquidity stock can be transferred at any time in the stock market for purchase or sale. It can also be inherited, donated, or mortgaged, but cannot be withdrawn. Therefore, stocks are also mobile assets with strong liquidity. The transfer of an anonymous stock can be achieved only when the stock is delivered to the transferee. The transfer of a registered stock can be transferred only after the seller signs the seal. It is precisely because of the strong circulation of stocks that stocks become an important financing tool and continue to develop. A stock credential is a specific form of stock. Not only can a stock be issued and listed only after it has been approved by the relevant national departments, but its face must have some basic content. Stock credential Creation Program The recorded content and recording methods must be standardized and comply with relevant laws and regulations and the company's articles of association. Under normal circumstances, the stock credential of a listed company should have the following content: 1. The full name of the joint stock company that issues the stock and the date and address of registration. 2. Total issued shares, number of shares, and amount per share. 3. the face amount of the stock and the number of shares it represents. 4. The board of directors or directors of a stock issuing company, the seal of the issuing registration institution approved by the competent authority, and some of them also indicate the common stock or preferred stock. 5. Date of stock issuance and the serial number of the stock. For a registered stock, the name of the shareholder must be specified. 6. the table for stock transfer is printed. 7. Notes that should be stated in the opinions of the stock issuing company. Such as the procedures required for stock ownership transfer, the stock registry and address, and the priority of preferred shares. Due to the development and application of electronic technology, the issuance and trading of stocks in China's Shenzhen and Shanghai stock markets are all carried out by means of electronic computers and electronic communication systems. The daily trading of listed stocks has been paperless, therefore, the current stock is only a group of binary numbers managed by the electronic computer system. However, legally speaking, all listed shares must have the above content. The denomination of each stock issued in China is RMB 1, and the total issuance of the stock is the total share capital of the Listed Company Limited.