Becoming the owner (or part owner) of the company can be executed either by purchasing shares or by buying Interest (in LLC) - it depends on the legal form of the enterprise.
The authorized capital of a Limited Liability Company, General partnership, Limited Partnership, Additional Liability Company is divided into parts, corresponding proportion of participants. The acquisition of such shares means the ownership of Interest of the Company.
Investments in shares - is buying equity securities with the expectation of increasing their market value. In developed markets investor also can expect dividends, but in Ukraine the practice of paying dividends is not very common. By profitability and risk, investments in shares are at the second place after venture capital investments. The Investor can make purchases of shares by his own, but in any case he needs careful analysis and continuous monitoring of enterprise in which the money invested. You can also entrust the selection of investment professionals - it will make the process more predictable and calm.
Share - registered security that certifies the property rights of the owner (shareholder) relating to the company, including the right to receive part of the profit of the company in the form of dividends and the right to receive the property company in the event of liquidation, the right to manage joint stock company and non-material rights. Shares in Ukraine can be one of two types - simple and preferred.
Ordinary shares give their holders the right to receive part of the profits of the company in the form of dividends, to participate in the joint-stock company for the property company in the event of its liquidation and other rights provided by law. Ordinary shares give their holders the same rights.
Preferred shares give their holders the preferred, compared to holders of ordinary shares, right to receive part of the profits of the company in the form of dividends and right to receive part of company’s property in the event of liquidation, as well as providing the right to participate in management of the company in the cases stipulated by statute and law.
Typically, in Ukraine investor shouldn’t expect for dividend income, so for owners of small stakes profit is increasing of the market value of securities.
Organized trading occurs on stock exchanges where there are rules. Buying and selling takes place through an intermediary - brokerage company. Recently, a lot of popularity gets internet trading, where investor can directly enter into the agreement.
Market value of shares depends on many factors and therefore predict its movement - it is very complicated. Conditions often change, what affects the price of securities. Therefore, one can identify independent work by investing in securities and work through a professional manager. In independent work required a thorough analysis and ongoing monitoring of companies whose shares are purchased. This type of investment requires a certain level of knowledge of the stock market. When working with a professional manager (asset management company with joint investment institutions or brokerage) investors shouldn’t completely possess any knowledge of the securities and the economy as a whole, all the tasks of monitoring and selection of investment objects he puts on the advisor.
