Shares – General Concepts and Assessment

Abstract

The capital market was developed in order to facilitate the meeting between the capital suppliers (short or long-term investors) and those who need capital in order to fund various investment projects (companies, local or regional public institutions). At the same time, it has the role to increase the transparency of transactions made between these two large categories of market participants, but also to regulate them by imposing laws and rules of conduct. Practically, it has the role of a mediator between the market participants, being intended to maintain a high level of trust between those who assign their capital and those who receive it. The transfer of capital is made by selling-buying financial titles entailing certain rights for the one that bought them and certain obligations for the one that issued them. There are two categories of main financial titles on the market: shares and bonds. In this article we shall present the general concepts regarding shares and the ways in which they can be assessed.

Keywords

• capital market
• share
• shareholder
• nominal value
• issue price
• issue premium
• dividends
• market capitalization