The nominal value of shares and stakes in joint-stock company

The nominal value of the shares – the initial price at which shares are implemented via the establishment of joint-stock companies. In other words, this is the price that is indicated on the shares in issue. It should be noted, the height of the nominal value in relation to the real has led in developed countries to what was permissible to issue shares without its guidance, that is, denotes just the number, series and classes of shares.

The nominal value may change. In the case of its increase should register with the appropriate authority of the issue of shares with new nominal value and the shares or their certificates are withdrawn from circulation and to issue all shareholders with new certificates and shares.

In contrast to the nominal value, the share price – the price that was established on the market. It is also called exchange rate value. That is, at this price stocks are bought and sold. If the nominal value above the market, its owner receives a prize. If below, then it is called discount. Rarely happens when these values are equal. This is called Alpari.

In the balance sheet the issue of securities is accounted for initially at their nominal value. Then subsequent selling of shares at a price above face value will result in additional capital. This indicator is therefore primarily important for accounting.

If the shares are quoted on stock exchanges, then they will be sold at the exchange price, to be determined in U.S. dollars. With the quote of the stock price may increase or decrease. It is not uncommon for liquid stocks can easily become blank pieces of paper, so the art of the broker is to be able to sell such shares and not to lose investment. Also, the stock price may increase, then the broker should be time to buy such stock in order to get a good profit. This business involves significant risks. You can benefit from the sale of shares in large funds and lose their investments.

In addition, the concept of "nominal value" applies to the coin value. In this case, the value will be different not only from the value on the market, but, above all, from the collector's value, which is determined by auctions. As a rule, the nominal value of bullion coins often had a purely formal character, because its value is determined by the weight of the noble metal included.

A joint stock company would like to sell their shares, that's just who they are really needed? In the Russian Federation the demand mainly on “blue chip”. The shares of JSC «Gazprom», «Norilsk Nickel" NC «LUKOIL” will always be respected. But keep in mind that large blocks of shares of these companies go to Moscow or even abroad. Most of the small shareholders do not want to invest in a large joint-stock companies, believing that their voice will have weight. After all, here the great value has the nominal value of a share of stock. The more you share, the greater the weight. But, accordingly, the more the value of the company, the more it will cost the controlling stake.

In order to protect the interests of the joint-stock companies and shareholders, the law establishes serious obstacles to the acquisition of a controlling stake by a single person. The concentration of significant shares of stock in the same hands may deprive small shareholders of the incentive to the purchase of securities, since all decisions of the General meeting will be determined by the decisions of one person.

In the Charter of a society can be defined a maximum total nominal value, the maximum number of shares the maximum number of votes per shareholder.