Acquire Perfect Stocks Certificates and Forms
A company is made by people who come together with the same interest of making profit, there are different types of companies public and private company. Public company require public disclosure this comprises of annual accounting reports which should be made available to the public with this the business has no secrets whereas in private companies they are not required to avail the reports to the public hence they can keep business secrets.
To raise capital in a company they sell shares. When one buys shares, they become share holders hence the owners of a company. There are different ways that the two different types of companies sell their shares, the public company advertise and sell their shares through the stocks exchange market whereas the private companies are restricted from selling through the stocks exchange.
A company is made by shareholders, there are different types of shares including ordinary, preference cumulative and redeemable shares. Ordinary shares have the following characteristics right to call for meetings, dividends on shares are not fixed, they are paid after the preference shares, incase of liquidation they are paid last.
Preference shares have the following properties dividends on shares are fixed hence do not call for meetings and are not determined by profits, they are paid first before ordinary shares in case of liquidation of a company they are paid first. Stocks forms are filled when buying shares after which stock certificates are issued as an evidence to avoid fraud by duplication these certificates are written uniquely.
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