1. Stocks Stocks are a major form of securities and refer to certificates issued by a joint stock company to certify the shares held by shareholders.

It can be seen from this definition that stocks have three basic elements: issuing entity, shares, and holders.

As a certificate of ownership, stocks have a certain format.

my country's "Company Law" stipulates that stocks should be in paper form or other forms specified by the securities management department of the State Council.

2. Shares Shares are the form of capital of a joint stock company.

The meaning of shares has three levels: first, shares are a component of the capital of a joint stock company; second, shares represent the rights and obligations of shareholders of a joint stock company; third, shares can express their value in the form of stock prices.

3. The nature of stocks There are five main characteristics of stocks.

First, the stock is a marketable security; second, the stock is a type of security; third, the stock is a warranted security; fourth, the stock is a capital security; fifth, the stock is a

Comprehensive rights securities.

4. Granted securities Granted securities mean that the rights represented by the securities do not originally exist, but arise with the creation of the securities, that is, the occurrence of rights is conditioned on the creation and existence of the securities.

5. Rights-certifying securities. Rights-certifying securities mean that securities are a materialized external form of rights. They are the carrier of rights, and rights already exist.

6. Property securities Property securities refer to securities in which the security holder has direct control over the company's property.

7. Debt securities Debt securities refer to securities whose holders are creditors of the company.

8. Profitability of stocks Profitability is the most basic characteristic of stocks. It refers to the characteristics that holding stocks can bring benefits to investors.

The purpose of holding stocks is to earn income.

The income from stocks can be divided into two categories: the first category comes from the dividends and dividends of the joint stock company; the second category comes from the price difference of the stock circulation.

9. Capital gains Capital gains means that stock holders hold stocks and trade them in the market. When the market price of the stock is higher than the purchase price, they can earn profit from the price difference by selling the stock. This price difference profit is called capital gain.

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10. The risk of stocks The risk of stocks refers to the characteristics of stocks that may cause loss of economic benefits.

Holding stocks involves a certain amount of risk.

The connotation of stock risk is the uncertainty of expected returns.

Theoretically, the size of stock returns is directly proportional to the size of risk.

11. Liquidity of Stocks Liquidity means that stocks can be traded freely.

That is, holders can flexibly transfer stocks according to their own needs and market conditions.

12. Permanence of shares Perpetuity means that the validity of the rights contained in the shares remains unchanged because it is an indefinite legal certificate.

The validity period of the stock is related to the duration of the joint stock company, and the two coexist.

To understand the permanence of stocks, two points should be noted: First, although buying stocks is a permanent investment, it can be seen from the liquidity characteristics that stock holders can sell their stocks and transfer their shareholder status; second, once a joint-stock company is

No longer exists, and the shares issued by it are worthless.

13. The participatory nature of stocks The participatory nature of stocks refers to the characteristic that stock holders have the right to participate in major decisions of the company.

14. Stock volatility Stock volatility refers to the frequent changes in stock trading prices, or the frequent inconsistency with the stock's par value.

15. Ordinary shares Ordinary shares are the most common type of stock, and their holders enjoy the basic rights and obligations of shareholders.

Dividends from ordinary stocks vary entirely with the company's profits. Common shareholders are listed after creditors and preferred stock shareholders in the order of distribution of the company's profits and residual property, so the risks they bear are correspondingly higher.

16. Preferred stock Preferred stock is a special kind of stock that has certain special conditions attached to its shareholder rights and obligations.

It corresponds to ordinary stocks and refers to stocks in which shareholders enjoy certain preferential rights (such as priority distribution of company profits and remaining property).

Compared with ordinary stocks, preferred stocks have some special conditions attached to their shareholder rights. They are the most important type of special stocks.

17. Registered stocks Registered stocks refer to stocks whose names of shareholders are recorded on the face of the stock and on the shareholder list of the joint-stock company.

It corresponds to bearer shares.

18. Bearer stocks Bearer stocks, also known as bearer stocks, refer to stocks in which the name of the shareholder is not recorded on the face of the stock or in the shareholder list of the joint-stock company.

The main difference between it and registered stocks lies in the way the stocks are recorded.

19. Par value stocks Par value stocks refer to stocks with a certain amount of money recorded on the face of the stock.