authorized capital stock consists of the nominal value of its securities.Share issue and placement is carried out directly in the establishment of the company (including its members), as well as in the case of a decision to increase the share capital by means of additional shares (or conversion of other securities).
such securities as stocks, confirm the right of holders to share in the capital of the company, as well as all the rights that follow from this (management, a portion of profits, disposal of shares etc.).They are perpetual instruments, ceasing only be issued with the departure from the market of the issuer.
issue - a necessary measure resorted to by most companies when they need additional funds for development.This is the best alternative to credit and finding investors.
issue - the issue of securities, carried out in a strictly regulated by law.Control procedures at the national level is carried out in order to protect investors from possible bad faith issuers.
possible to carry out multiple issues of shares: common and preferred (with a par value of not more than 25% of the share capital).
Additional issue of shares accompanied by the amendments to the Charter.Its main stages are: a decision on the issue, registration of the issue, making the certificate (with the documentary form of release), a direct placement of securities and the subsequent registration of the report on the results of their issue.
If the number of shareholders more than 500 (or total value of more than 50 thousand. SMIC), you will need to register a prospectus (in this case the issue is considered to be public).
additional share issue - a complex and tightly regulated process that requires extremely transparent reporting and transparency of information about the issuer.
At registration of the stipulated (in writing) the obligation of the issuer, and the whole issue is assigned a registration number.When you issue a public company is obliged to provide investors with access to the information they need.The company thus has to publish reports on the activities of (quarterly reports with data about financial condition).The shares may only begin after the registration.
decision on the additional issue completely accepted by all participants on a general meeting of shareholders.
volume of the rights granted by the owner of the shares depends on whether it is common or preferred.Dividend payments directly poroportsionalny financial results of the Company for the year.The company has the right to decide not to pay dividends, instead of the profit on the development of production.
Share issue contains risks, because the issuer can make a mistake in the calculations, resulting in additional securities will be placed (they do not buy potential investors) that reduce the cost of already listed shares.