Stock Knowledge Guidance: Stock Financing

< p > > a href= "http://www.91se91.com" > stock < /a > is a kind of negotiable securities. It is a proof of the rights and obligations of shareholders according to their shares. It represents shareholders' ownership of the company.

According to the degree of shareholders' risk and the size of their rights and interests, they can be divided into common stock and preferred stock.

Common stock is a special right share issued by a joint stock company. It is the most basic share and the most risky stake.

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< p > < strong > 1. the types of common stock < /strong > < /p >

< p > (1), according to the different investors, they are divided into state shares, legal person shares, individual shares and foreign capital stocks.

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< p > (2) is divided into registered stock and bearer stock according to whether or not it is registered.

A registered stock records the name or name of the stockholder on the face of the stock and includes it in the register of shareholders of the company. Its pfer has strict legal procedures and procedures.

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< p > (3) is divided into nominal shares and non par value according to whether the amount is marked.

The face value of a stock is marked on the face of the coupon, and the holder's share of the company's rights and obligations is determined according to the proportion of the total face value of the shares held by the company. The value of the shares is not recorded in the face value, only the percentage of the total share capital of the company. It is also known as the "proportional share".

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< p > (4) according to the object of issue and the place of listing, it is divided into < a href= "http://www.91se91.com/news/index_s.asp" > A shares < /a > B shares, H shares and N shares.

The A share is a stock that is bought and sold by individuals or legal persons in the mainland of China, marked in the renminbi, and subscribed and traded in Renminbi.

B shares, H shares and N shares are stocks that are specifically bought and sold by Hong Kong, Macao, Taiwan and foreign investors, which are marked in Renminbi, but are subscribed and traded in foreign currencies.

B shares are listed in Shanghai and Shenzhen, mainland investors can also buy and sell; H-shares are listed in Hongkong; N shares are listed in New York.

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< p > < strong > 2. the advantages and disadvantages of common stock financing are less than /strong > /p >

< p > common stock financing has the following advantages: < /p >

< p > (1) common stock can ensure the minimum capital requirement of the company and is of great significance for maintaining the long-term and stable development of the company.

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< p > (2) common stock financing does not have a fixed dividend burden. Whether the company pays dividends or how much dividends can be paid depends on the company's profit and business needs.

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< p > (3) issuing ordinary shares can serve as a basis for raising funds in other ways, especially providing protection for creditors and enhancing the enterprise's ability to borrow money.

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< p > common stock financing also has some obvious shortcomings: Legal Education Network < /p >

< p > (1) the capital cost of common stock raising is relatively high.

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"P > (2) the issue of common stock may increase the new shareholders and decentralization of the control of the company.

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< p > (3) financing for issuing stocks needs to increase the pparency of < a href= "http://www.91se91.com/news/index_c.asp" > Company < /a >. It is necessary to publish important information such as the company's capital utilization plan and future development plan, which may be exploited by competitors.

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