The definition and the concept of stock equity


No doubt that you read every day in the daily news about a subscription launched by a specific company or an offer for sale of shares in University eligibility or public shareholding company, for example.
So, what are shares? Why it has its own market and does it deserve all this attention?

The definition and the concept of stock equity



The stock is an equity to own a part of a company, entitling the right of management both through its membership in the General Assembly of the shareholders or by the Board of Directors, also gives profits of the share according to the contribution in the company if it was there any profits and bear the losses as shares contribution and has the right to filter the output of the company upon its completion or resolution.

Historically when colonial powers become wider and dominate some poor countries, they needed huge funds to develop projects for exploiting the poor States bounties.
Here the genesis of the idea of shareholders companies that have too many stocks where many people contribute in the company and they meet enormous funds to the company to enable it to do business. And then this idea has expanded and grown until it has a significant impact on the economies of most countries in the world where on mega projects of industrial, commercial, and others.

Is the quantity  of a capital stock company.
equal securities value negotiable for exchange commercially.
shares are an important sector in the economy.
shares are  individuals ownership rights  in public companies

Stock types


cumulative stock                                                  • non-cumulative shares            •shares of participation                                                  • convertible stock
• Disposable shares

The difference between the stock and the bond:
1- The share represents part of the company's capital, and the bond is part of a loan to a company or Government.

2- Shares are changeable.

3- Holder of the bond is lender either shareholder is the owner of part of the company, so the share gives who hold it the right to interfere in the company.

4- Bonds have a specified time to plug either the share does not only can be paid after the liquidation of the company.


5- Bond when the bankruptcy quota distributed, either the share the holder can take his money after paying debts.