What is a share certificate & what are its types?

Share certificates are securities issued by companies to their shareholders to document their share in the company's capital. Also known as equity, a share certificate is a security that represents a partial share of ownership in a company. When you buy stock in a company you become a shareholder and the small part you own is called a share.

Shares can be purchased through banks and independent institutions, but if you want to buy and sell shares, you need to open an investment account with the agreed bank. After opening an investment account, stocks can be purchased via mobile or internet banking. However, before buying stocks, you should be familiar with the factors that affect their prices, and you should choose stocks belonging to sectors that you are familiar with or have an opinion about, rather than a sector that you do not know at all. Below, according to the Turkish Commercial Code, stocks are divided into 10 headings. Registered Share Certificates: Registered share certificates are share certificates with the name of the shareholder on them. Bearer Share Certificates: Registered share certificates are share certificates that do not have the name of the shareholder on them. They can be defined as stocks traded on the stock exchange. Paid Stock: Share certificates issued for a price in order to increase the capital of companies are called paid stocks. Bonus Shares: Share certificates issued due to the increase in the value of the assets of the companies due to the increase in free capital are called bonus shares. Ordinary Shares: Ordinary shares are stocks that give their owners the right to participate in management, voting rights and dividends in proportion to their shares. Preferred Stock: A share certificate that has differences compared to ordinary shares and gives privileged rights specified in the articles of association of the company is called a preferred stock. Premium Stock: Stocks that are put up for sale at a higher price than their nominal value are called Premium Stocks. Non-Preferred Stock: A share certificate offered for sale at a price higher than its nominal value is called a non-preferred stock. Founder's Stock: The type of stock given free of charge to the founders of a company is called Founder's Stock. Holders of these shares have only dividend rights. Redeemable Shares: The shares given by the company in return for services are called Redeemable Shares.   Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!