Shares
A share is an investment instrument – a security issued
by a joint stock company in order to acquire capital for its
establishment or further development. The share expresses an
equity share in the company that issued the security, while
the holding of a share represents different rights (for
instance the right to participate in the profits of the
company in the form of a dividend, the right to participate
in and vote at a General Meeting of the shareholders or to
participate in the liquidation balance of the company in
case of its liquidation).
Different types of shares entitle the owner with
different rights and, accordingly, fall into one of the
following categories:
- common shares (ordinary) – entitle their owners to
participate in the General Meeting, draw dividends and
exerce voting rights.
- priority shares (preferred) – provide their owners
with some exclusive rights, such as drawing on a
guaranteed dividend. Owners of such shares, however, are
not entitled to vote at the General Meeting.
Investors may trade both Czech and foreign company stock
issues at the Exchange. Many of those companies are major
international concerns active in a wide variety of fields
(telecommunications, pharmaceuticals, banking,
petrochemicals etc.).
Stock shares (including foreign issues) are traded in
Czech currency.
For selected stock listings, liquidity is secured by
market makers who guarantee investors the possibility of
continually buying and selling the issue in question.
The following types of trades can be concluded on the
Exchange with stock shares:
Detailed information: