Shares are the part of the company’s equity. Shares prove their owner’s, i.e. shareholder's right to participate in the management of the company, to receive dividends and to exercise other statutory rights. Purchasing part of a business, i.e. shares of the company is more risky than lending the company money upon buying bonds: together with the shares one acquires the management tasks and responsibilities. However, investment in shares provides greater opportunities to earn.
- When you buy shares in the company:
- You acquire partial ownership of the company and the right to receive the company's profits in the form of dividends
- You can acquire the voting rights during participation in the company management;
- Investment in promising company’s shares, expects positive return on investment.
Types and classes of shares
It is important to draw attention to the fact that there are several types and classes of shares. Type and class predetermine the rights you acquire by purchasing shares.
The main types of shares
- Preference shares generally do not confer voting rights at the general meeting of shareholders, but provide larger, often predetermined in advance, amount of the dividends.
- Ordinary registered shares form the core of the company's shares. All ordinary registered shares grant the right to vote at the shareholders' meeting and to receive dividends, if it is decided to pay them.
Classes of the Shares
Shares may be divided into classes, which give shareholders larger or smaller rights. Classes can be identified by letters (e.g., A, B) and are often linked with the right to vote. Suppose that class A shareholders acquire more votes compared with the holders of class B shares.
Value and price of shares
During assessment of investments in stocks and their returns, it is important to draw attention to the value and price of shares:
- The share value shows the company's asset value, less any liabilities of the company and plus value of the expected profits;
- The share price (the amount at which you buy or sell the share) reflects the value of the shares and investors' expectations, general economic trends and so on.
So the share value set by analysts does not indicate that its market price is the same.
Select sum of money to buy the bonds according to your investment objectives and financial resources. Having chosen to invest in shares, we recommend you to pay attention at the fees applied by Šiaulių bankas
The price of shares depends on their liquidity (opportunity to turn the shares quickly and with a minimum of losses into cash). Liquidity is very important when you buy or sell a lot of shares: if liquidity is low, buying or selling process can last long and require additional costs.
When investing, it is very important to supervise the investments, so it is necessary to check in advance of what kind of information about shares prices, corporate results etc. can be obtained, as well as the information receipt channels and frequency.
Risk of investment in equities is high: if the company goes bankrupt, you may lose the full amount invested. On the other hand, there are substantial profit opportunities: you can earn from dividends, if the company pays them, as well as from the share price increase, if an entity is doing good business. Thus the shares risks are: credit, capital, market, investment moment selection, currency, liquidity, legal market regulators etc.
How do I start investing?
1. First of all, you have to sign a contract for the provision of investment services and open a securities account in any unit of Šiaulių bankas.
2. Submit order to buy or sell shares:
- By logging into securities trading platform: it is convenient to monitor and manage your securities portfolio;
- Through financial brokers of Šiaulių bankas.
Where to go?
The most convenient way is to fill this request form, and the required specialist will contact you.
For more information about these investment instruments, conditions and fees call 1813
(+370 37301337 when calling from abroad).
The information contained herein is only a presentational marketing message. It cannot be regarded as an offer to buy any financial instruments, to sell them and/or to conclude the transaction (s).
Please note that investing involves certain risks, so before making an investment decision, you have to take into account that, under certain circumstances, which are independent of will and action of Šiaulių bankas AB, your investment value may drop. Šiaulių bankas AB is not responsible for your decisions taken on the basis of the information contained herein.