Shares - Titles of Property

Topic 2. Shares – titles of property

2.1. Shares: concept, types and fundamental characteristics. Legislative aspects in the Republic of Moldova.

2.2. The methods of shares’ issuance and placement. Subscription right. The methods of shares’ issuance and placement in the Republic of Moldova.

2.3. The valuation of shares.

Bibliografie

1. Legea privind societăţile pe acţiuni. Nr.1134-XIII din aprilie 97 // Monitorul Oficial. - 1997. - nr.38-39/332.

2. Legea privind Piaţa Valorilor Mobiliare. Nr.199-XIV din 18 noiembrie 1998 // Monitorul Oficial. - 1999. - nr. 27-28.

3. Anghelache, G. Pieţe de capital şi burse de valori. – Bucureşti: Editura Adevărul, 1992. - P. 75-120.

4. Ciobanu, Gh. Bursele de Valori şi tranzacţiile la bursă. – Bucureşti: Editura Economica, 1997. – P.127- 135.

5. Dragoescu, E.; Dragoescu, A. Pieţe financiare primare şi secundare şi operaţiuni de bursă. - Cluj-Napoca: Editura Humanitas, 1994. – P. 19-42.

6. Madura, J. Financial Markets and Institutions. - USA: Florida Atlantic University, West Publishing Company, 1995. – PP. 47-65, 249-273

7. Mishkin Frederic S. The Economics of Money, Banking and Financial Markets. – USA: Columbia University, Addison Wesley Publisher, 2002. - PP. 175-197, 199-219.

8. Колесников, В.И. и др. Ценные бумаги. - Москва: Финансы и статистика, 2002. – C. 33-37, 57-72.

9. Сидни Коттл и др. Анализ ценных бумаг Грэма и Додда. – Москва: ЗАО Олимп-Бизнес, 2000. – C. 433-501 .

Definition

Stock (share) is a type of security that signifies ownership in a corporation and represents a claim on part of the corporation's assets and earnings

Shareholder is an individual or company that legally owns one or more shares in a joint stock company.

Types of shares issued and negotiated on the capital market are the result of grouping according to the criteria:

1. The way of identification:

- Nominative shares –the name of the proprietor is written on them, being issued:

- in materialized form – on paper, or

- in dematerialized form – in account.

- Bearer shares – the share is the propriety of the person who has it and circulates only in materialized form.

2. According to the rights which can be generated:

- Ordinary shares – give the right to the holder to obtain the dividend annually, that is a proportional part from the generated profit by the society in the expired year and distributed among the shareholders;

- Preferential shares – give the right to obtain a fixed dividend, not depending on the size of the generated profit by the society in the respective year.

Characteristics of ordinary and preferential shares

Nr. Characteristic Shares

Ordinary Preferential

1. The right to vote One vote for each obtained share Do not benefit from this right

2. The right to dividend Variable, proportional directly with the quota of participation at the social capital and applied to the nominal value Fixed, of priority in absolute or in percentage size applied to the nominal value

3. The transfer of shares Through the transaction on the secondary capital market

4. Annual reports To receive the annual balance sheet with the account profit or loss

5. The distribution of asset in case of liquidation Receiving of a part of the asset after the coverage of liabilities

6. The registration of shares The evidence of each shareholder in the registry of shareholders

7. Responsibility Limited to the value of the social capital held

8. The decision to issue Belongs to the joint stock company and to the shareholders Belongs to the ordinary shareholders

9. The limit of issuance Not greater than the limit of social capital Maximum ¼ from the social capital

10. Convertibility Without In ordinary shares