Stock is a share certificate issued by a joint stock limited company to investors when raising capital, which represents the ownership of the joint stock company by its holders (i.e. shareholders).

stock is the right to claim the company's income and assets.

this kind of ownership is a comprehensive right, for example, ordinary shareholders can attend shareholders' meetings, vote, participate in major decisions of the company, receive dividends or share dividends. Every stock in the same category represents equal ownership of the company. The share of ownership of the company owned by each shareholder depends on the proportion of the shares held by each shareholder to the total share capital of the company. Generally, stocks can be transferred with compensation by buying and selling, and shareholders can recover their investment through stock transfer, but they cannot ask the company to return their investment. However, the company can buy back its own issued shares through the stock market, raise the stock price to protect the rights of shareholders and concentrate the rights and interests of each share. The purpose of this practice is to protect the rights of small and medium-sized tradable shareholders. The relationship between shareholders and the company is the relationship between ownership and being owned, which is different from the relationship between creditor's rights and debts. Therefore, the shareholders' right of claim against the company is the residual right of claim, and they can only claim for the remaining assets when the creditors fully recover their claims. Shareholders are the owners of the company, and they are limited liability to the company to the extent of their capital contribution, bear risks and share profits. (Of course, some shareholders of high-speed technology enterprises may obtain shareholder status based on their technology. Enterprises can raise funds through public offering of shares to the society, or they can enrich their assets by private offering. At present, most of the companies listed on Shanghai Stock Exchange and Shenzhen Stock Exchange are state-controlled companies, but a considerable number of them are private joint-stock companies.

nature of shares

the income that shareholders get from joint-stock companies with shares is dividends. The distribution of dividends depends on the company's dividend policy. If the company does not distribute dividends, shareholders have no right to receive dividends. Preferred shareholders can get a fixed amount of dividends, while the dividends of ordinary shareholders are related to the company's profits. Dividends of common shareholders are distributed after those of preferred shareholders, and only after all preferred shareholders have received the dividends they have promised in full can common shareholders have the right to distribute dividends. Stock is only the ownership certificate of the actual capital owned by a joint-stock company, and it is the certificate to participate in the company's decision-making and claim dividends. It is not the actual capital, but only indirectly reflects the situation of the actual capital movement, thus showing itself as a kind of virtual capital.

the origin of stock

the stock has a history of nearly 4 years, and it appeared with the emergence of joint-stock companies. With the expansion of business scale and insufficient capital demand, a way is required for the company to obtain a large amount of capital. As a result, an enterprise organization appeared in the form of a joint-stock company, and its shareholders jointly invested and operated. The change and development of joint-stock companies have produced financing activities in the form of stocks; The development of stock financing has produced the demand for stock trading; The demand for stock trading has contributed to the formation and development of the stock market; And the development of the stock market finally promotes the perfection and development of stock financing activities and joint-stock companies. Stocks first appeared in capitalist countries. The earliest joint stock limited company system in the world was born in the East India Company established in the Netherlands in 162. After the emergence of the joint-stock company, it was widely used by capitalist countries and became one of the important forms of enterprise organization in capitalist countries. With the birth and development of joint-stock companies, the way of raising funds in the form of shares has also developed, and there has been a demand for trading and transferring shares. In this way, it promoted the emergence and formation of the stock market, and promoted the perfection and development of the stock market. In 1611, the shareholders of the East India Company traded on the Amsterdam Stock Exchange, and later a special broker arranged the transaction. Amsterdam Stock Exchange formed the first stock market in the world. At present, the company limited by shares has become one of the most basic forms of enterprise organization; Stock has become an important channel and way for large enterprises to raise funds, and it is also the basic choice for investors to invest; The stock market (including the issuance and trading of stocks) and the bond market have become important basic contents of the securities market.

the role of stocks

(1) stocks are a proof of capital contribution. When a natural person or legal person invests in a joint stock limited company, they can obtain stocks as a proof of capital contribution;

(2) The holders of shares prove their shareholder status by virtue of their shares, attend the shareholders' meeting of the joint-stock company and express their opinions on the operation of the joint-stock company;

(3) Shareholders participate in the profit distribution of share-issuing enterprises by virtue of their shares, which is commonly referred to as dividends, so as to gain a certain influence on the economic stock market

(2) The influence of the stock market Joint-stock companies, stocks and stock markets have undoubtedly played a positive role in the economic development of enterprises in capitalist countries. Stock companies, stocks and stock markets are not unique to capitalism. China is a socialist country. Under the condition of developing a planned commodity economy, we can also use the enterprise organization form of joint-stock companies, the way of stock financing and the adjustment mechanism of the stock market to serve the development of a planned socialist commodity economy. Its positive functions are as follows: 1. Its role in national economic development

(1) It can widely mobilize, accumulate and concentrate idle funds of society, serve the development of national economic construction and expand the scale of production and construction.

(2) It can give full play to the market mechanism, break the compartmentalization and regional blockade, promote the horizontal financing of funds and the horizontal connection of economy, and improve the overall efficiency of resource allocation.

(3) It can explore a new way to reform and improve the organizational forms of Chinese enterprises, which is conducive to constantly improving the organizational forms of enterprises owned by the whole people, collective enterprises, individual enterprises, foreign-funded enterprises and joint-stock enterprises, giving full play to the position and role of the joint-stock economy in China's national economy and promoting China's economic development.

(4) It can promote the deepening development of China's economic system reform, especially the deepening development of the shareholding system reform, and help to straighten out the property rights relationship, so that the government and enterprises can each take their place, perform their duties, use their rights and benefit from each other.

(5) It can expand the channels and ways of utilizing foreign capital in China, enhance the ability of absorbing foreign capital, help to utilize foreign capital more and improve the economic benefits of utilizing foreign capital, and achieve the effect of "using foreign capital without borrowing foreign debt".

stock classification

rights issue is the behavior of listed companies to further issue new shares and raise funds to the original shareholders according to the needs of company development and relevant regulations and procedures. Traditionally, when a company issues shares, the subscription right of new shares is distributed among the original shareholders according to the original equity ratio, that is, the original shareholders have the preemptive right. Share transfer is a unique product of China's stock market. The holders of state shares and legal person shares give up the allotment and transfer the allotment to other legal persons or the public for compensation. The new shares subscribed by these legal persons or the public when exercising the corresponding allotment are called allotment. At present, the rights issue is not listed and circulated. Although the transfer of shares can solve the problem that state shareholders and corporate shareholders are unable to issue shares. However, it causes the proportion of state shares and legal person shares in the total share capital to gradually decrease, and in the long run, it will lose its controlling stake. Meanwhile. The rights transfer has produced social public shares that cannot be circulated at present, which has affected the enthusiasm of investors to subscribe and brought about the confusion of ownership structure. In order to overcome the limitations of the rights issue, more and more state shareholders and corporate shareholders of listed companies have joined the rights issue in succession with their current owners or converted their assets into cash. Greatly improve the strength of the factory company, not only to ensure that the equity is not diluted. It also encourages the public's confidence in the investment of Bushi Company. According to statistics, by the end of 1997, there were 1.689 billion tradable rights shares in Shanghai stock market, accounting for 1.59% of the total share capital.

1. according to the listing area, it can be divided into: the stocks of listed companies in China are divided into A shares, B shares, H shares, N shares and S shares.

A shares

The official name of A shares is RMB ordinary shares. It is a common stock issued by domestic companies for domestic institutions, organizations or individuals (excluding investors from Taiwan, Hong Kong and Macao) to subscribe and trade in RMB. A shares mainly have the following characteristics: (1) issuing common shares in China that only domestic investors can subscribe in RMB; (2) The stocks that account for the largest proportion of the outstanding shares issued by the company are also well-circulated, but the A shares of most companies are not the most issued by the company, because at present, in addition to issuing A shares, most listed companies in China also have non-circulating state shares or state-owned legal person shares, etc. (3) It is considered to be a stock that only pays attention to the profit distribution right, but not to the management right, mainly because people who participate in A-share trading in the stock market pay more attention to the price difference between A-share trading and other rights they represent.

B shares

B shares are also called RMB special stocks. Refers to those special stocks registered in Chinese mainland and listed in Chinese mainland. Indicate the face value in RMB, and can only subscribe and trade in foreign currency.

H shares

H shares, also known as state-owned shares, refer to the shares of state-owned enterprises listed in Hong Kong.

S shares

S shares refer to the shares of enterprises whose core business is mainly production or operation in Chinese mainland, and whose registered place is in Singapore or other countries and regions, but which are listed on the Singapore Stock Exchange.

N shares

N shares refer to those foreign-funded shares registered in Chinese mainland and listed in New York.

2. According to the classification of shareholders' rights represented by stocks:

Common stock refers to the shares that enjoy common rights in the company's operation and management, profit and property distribution, and represents the right to claim the profits and remaining property of the company after meeting all the requirements for repayment of creditor's rights and the requirements for income and claim of priority shareholders. Common stock constitutes the foundation of a company's capital and is a basic form of stock. At present, the stocks traded in Shanghai and Shenzhen stock exchanges are all common stocks. Ordinary shareholders enjoy the following basic rights in proportion to the shares they hold: (1) The right to participate in the company's decision-making. Ordinary shareholders have the right to participate in the shareholders' meeting, and have the right to propose, vote and vote, or entrust others to exercise their shareholder rights on their behalf. (2) Profit distribution right. Ordinary shareholders have the right to receive dividends from the company's profit distribution. The dividend of common stock is not fixed, which is determined by the company's profitability and its distribution policy. Ordinary shareholders must obtain fixed dividends from preferred shareholders before they are entitled to dividend distribution rights. (3) stock options. If the company needs to expand and issue more common shares, the existing common shareholders have the right to purchase a certain number of newly issued shares at a certain price lower than the market price according to their shareholding ratio, so as to maintain their original proportion of enterprise ownership. (4) the right to distribute the remaining assets. When the company goes bankrupt or liquidates, if the company's assets remain after paying off the debts, the remaining part shall be distributed in the order of preferred shareholders first and common shareholders later. Preferred stock preferred stock relative to common stock. Preferred shares have priority over ordinary shares in terms of the right to distribute profits and surplus property. Preferred stock shareholders have two rights: (1) priority distribution right. When the company distributes profits, the shareholders who own preferred shares have priority over those who hold ordinary shares, but enjoy a fixed amount of dividends, that is, the dividends of preferred shares are relatively fixed. (Example: If the company does not distribute dividends to preferred shareholders, it cannot distribute dividends to ordinary shareholders. Because preferred shareholders have priority to distribute dividends with ordinary shareholders. (2) Priority claim. If the company is liquidated and the remaining property is distributed, the preferred shares are distributed before the common shares. Note: When the company decides not to distribute dividends for several years in a row, preferred shareholders can enter the shareholders' meeting to express their opinions and protect their own rights. After rights issue, rights issue is a stock that is at a disadvantage compared with ordinary shares in the distribution of interest or interest dividends and residual property. Generally, after the distribution of ordinary shares, the residual interests are redistributed. If the company's profit is huge and the number of post-allotment issues is limited, the shareholders who buy the post-allotment can get high returns. After the issuance of rights issue, the funds raised generally cannot generate immediate income, and the scope of investors is limited, so the utilization rate is not high. Post-allotment is generally issued under the following circumstances: (1) When the company issues new shares to raise funds for expanding equipment, in order not to reduce the dividends to the old shares, the new shares will be issued as post-allotment before the new equipment is officially put into use; (2) In the case of enterprise merger, in order to adjust the merger ratio, the shareholders of the merged enterprise shall be paid a part of the shares and then allotted shares; (3) In companies with government investment, the shares held by the government are treated as post-allotment before the dividends of the privately held shares reach a certain level. Junk stock is the stock of a company that operates at a loss or violates regulations. Blue-chip companies operate well, with good performance, and earnings per share are above .5 yuan. In the blue-chip stock market, the stocks of large companies that occupy an important dominant position, have excellent performance, active transactions and generous dividends are called blue chips.

3. It can be divided into

① registered stocks and bearer stocks. This is mainly based on whether the stock records the names of shareholders. Registered shares are the names of shareholders recorded on the shares. If the shares are transferred, the company must go through the transfer procedures. Bearer stock means that the name of the shareholder is not recorded on the stock. If it is transferred, it will take effect through delivery. ② Stock with par value and stock without par value. This is mainly divided according to whether the stock records the amount of each share. A par value stock is the amount of each share recorded on the stock. No par value stock only records the total capital of the stock and the company, or the proportion of each share to the total capital of the company. ③ Single stock and plural stock. This is mainly divided according to the number of shares expressed on the stock. A single stock means that each stock represents one share. Plural stock means that each stock represents several shares. (4) ordinary stocks and special stocks. This is mainly divided according to the size of the rights represented by stocks. Dividends on common stocks increase or decrease with the company's profits. Special stocks generally get fixed dividends in priority according to the prescribed interest rate, but their shareholders' voting rights are limited. Special stocks are also called priority stocks. (5) Voting stocks and non-voting stocks. This is mainly based on whether the shareholders have the right to vote or not. Ordinary stock holders have the right to vote, and holders of preferred stocks who enjoy special interests in some aspects are often restricted in their voting rights. Shareholders without voting rights cannot participate in the company's decision-making.

4. According to the active degree of stock trading, Chinese investors divide stocks into first-tier stocks, second-tier stocks and third-tier stocks:

First-tier stocks

refer to stocks that are actively traded in the secondary market. The companies with these stocks have excellent performance and good development prospects. First-tier companies are in a leading position in the industry, and their products are irreplaceable.

second line