Stock – is a registered uncertificated investment security that signifies ownership in a company, represents a claim on part of the company’s assets and earnings, entitles the owner to participate in the management of the company and receive remaining assets relative to the amount of share in the charter upon liquidation of the company.
According to the legislation, stocks are uncertificated and registered.
Stocks can be common and preferred.
- Common stock – is a security that entitles its owner to receive dividends from issuer’s earnings, participate in the management of issuer’s operations and receive some part of remaining assets following the liquidation of the issuer.
- Preferred stock – is a type of share that guarantees its owner to receive dividends based on the stable interest of the stock’s book value regardless of issuer’s operation results, entitles to have a higher claim on assets and earnings than the other shareholders following the liquidation of the issuer, as well as provides other rights under the Civil Code, rules of issuance and the charter of the issuer.
Face value of a stock is the stock value expressed in currency in accordance with company’s charter. Face values of stocks are expressed in national currency of the Azerbaijan Republic. An issuer cannot allocate stocks below face value.
BSE facilitates stock allotment and secondary market operations. Stocks have to be listed on BSE in order to be able to trade.
According to the law, allotment of shares (public offering) of an open joint stock company has to be carried out through a stock exchange. A prospectus shall be prepared for public offering of securities. SCS sets requirements for drafting of a prospectus.
Secondary market is organized for allotted stocks that are already in turnover.
Acquisition of securities on BSE and participation if BSE facilitated market is undertaken through stock exchange members. For this you need to contact any stock exchange member.
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