👍 What is stock
✅ Unit that constitutes the capital of a stock company
✅ Securities representing the equity interest of a corporation
A corporation must have the following elements by law:
-General shareholders' meeting: decision-making body
-Board of Directors: Business execution and representative organization
-Audit: Supervisory authority
Stocks are essential for corporate management because small-scale capitals are gathered to form huge capital.
At this time, the person who owns the stock is called the shareholder, and the shareholder has rights and obligations only for the amount he has invested, and follows the "Limited Liability Principle", which is not responsible for the creditors of the company.
The following is the right of shareholders, "shareholders' rights".
👊 Public interest
It affects the entire company and exists to prevent pathology in the company
🙌 Sole shareholder rights
You can exercise if you own even 1 share
Voting rights, right to invalidate the issuance of new shares, right to claim cumulative votes
🙌 Minority shareholder rights
You must own a certain percentage of stocks to exercise.
Right to collect general meetings, right to request dismissal of directors, right to supervise, and right to work
👊 Self-interest
Rights recognized as an investor for individual shareholders' property interests
Right to claim dividends of profit, right to claim for distribution of residual assets, right to request for stock issuance, right to request for stock purchase, right to request for the transfer of stock names, right to request for conversion of bearer stock to registered stock
👍 Characteristics of stock investment
You can expect returns as high as risky.
Unlike real estate, transactions are frequently carried out in the stock market, and the procedure is also handled by a brokerage company, so it is simple and has excellent currency.
There is no capital gains tax when minority shareholders make trading profits by trading listed stocks in the marketplace, and dividend income tax is levied only on dividends.
As a real asset, it moves in line with inflation, so it has an inflation hedge function.
In the case of inheritance or gift, you only need to transfer the title without complicated registration procedures like real estate, and the division is easy, so it is easy to subdivide.