Understanding Share Capital and Selling Shares

Shares can only be bought at the time they are initially issued by the corporation.

If all 100,000 shares are actually sold, the corporation gains 1,000,000 euros as share capital.

Share capital is usually redeemed by the company.

A corporation's stock must be listed on a stock market or stock exchange.

Bonds are considered securities and can be bought and sold on a stock exchange.

The share capital of AT&S equals $141,846,000 euros.

Issuing bonds is generally more attractive to corporations than borrowing from banks because the interest rate for bonds is usually higher than the interest rate for a bank loan.

Shares of private limited companies are usually offered to the general public at the stock exchange.

Minimum capital requirement for founding a GmbH (private limited company) in Austria is 50,000 euros.

Tina and Steve preferred to found a partnership instead of a GmbH because of lower minimum capital requirements.

Unincorporated businesses do not have legal personalities.

The Limited Liability Company (LLC) in the USA is an example of an unincorporated business.

Shareholders of preferred stock have the right to vote at stockholders' meetings.

Investing in shares represents an investment in real values that are resistant to inflation.

The abbreviation 'PLC' stands for 'Public Limited Company' and is more commonly used in the United States.

Dividends are a portion of a corporation's profits that are paid to shareholders.

Corporations are obligated to pay dividends to their shareholders.

One reason for investing in shares is the intent to provide financial support to a business.