Welcome back dear loyal readers of Invest in The Stock, we are always very satisfied and happy with the affection you show us on a daily basis. In today’s article, we’re going to talk about a trendy topic in the field of financial investments: savings shares.
We will see what they are, the main features, the advantages and finally, how to invest in savings and preferred shares.
What are shares?
Let’s first of all take a concrete look at what actions are.
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Basically, these are financial instruments among the most used by investors, which allow those who buy and sell them to provide excellent earnings.
Conversely, if you make a mistake in investing in savings shares and dividends, you can also record copious losses.
For this type of investment, in fact, the risk and return are on the same level.
Publicly traded companies
There are many reasons that lead a company to go public:
- The first may be to change the company structure
- Increase the number and diversify the members
- And in particular, increase the share capital to have more liquidity
Types of actions
It is worth pointing out that not everyone is aware that there are many types of shares.
Let’s go together to see which are the main ones available on today’s market.
When we talk about stocks we have to consider, ordinary shares, preferred shares and finally savings shares.
It should be kept in mind that shares are divided into registered and bearer shares.
It should be noted that the first category refers to titles that give rights and obligations to whoever owns them, given that the title itself is in the name of a natural person.
While bearer shares also confer rights and obligations on whoever owns them, but one enjoys greater privacy (as they do not indicate the name of the owner).
Only savings shares can be issued with this type of characteristics.
Normal and preference shares
Ordinary or normal shares are those that do not belong to any particular category.
In general, when we speak of rights associated with savings shares and dividends, we essentially mean the reference to those attributed to this category.
For the exceptions, on the other hand, it is explicitly stated which particular type of share is being referred to.
Simplifying things, in our guide on savings shares, we can say that:
Ordinary shares are registered and give the holder the right to participate and vote in shareholders’ meetings (ordinary and extraordinary), as well as the possibility of participating in the division of profits, and finally, to receive his share of the liquidation in the event of termination of society.
Non-convertible savings shares
Holders of these non-convertible savings shares can:
- Challenge the resolutions of the assemblies
- View the membership book
- Participate in the draft budget
- Exercise the right of withdrawal and the right of option, if there is a capital increase
- Preferred shares
As far as preferred shares are concerned, they take this name because they have a sort of privilege when it comes to dividing profits or in the repayment of capital, in the event of dissolution of the company.
Their issuance takes place through the deed of incorporation, where the conditions, limits, methods and terms are established.
These preferred shares are also issued by companies not listed on the stock exchange and by virtue of the greater economic rights.
So preferred shares are limited voting, this means that there is a possibility that they do not have the right to vote in ordinary shareholders’ meetings.
However, they retain the right to vote in extraordinary elections.
The holders of these preferred shares also have the right of option and withdrawal, the rights of appeal and summons and those of control and information.
What are savings shares?
List savings shares are shares in companies listed on the stock exchange.
Moreover, by purchasing the quotas or shares of a specific company, one automatically becomes a shareholder of the latter, and participates, through the invested capital, in the profits and losses of the company.
Characteristic savings shares
Now let’s go and see how Italian savings shares work.
They are a type governed by the Consolidated Law on Finance.
Unlike the classic shares we have talked about previously, non-convertible savings shares have a series of privileges of an asset nature, in the division of profits and in the final repayment of the capital.
Compared to the other categories of shares, these have no possibility of voting, but retain the rights of appeal and summons, as well as information and control.
They can only be placed on the market by companies listed on Italian or European Union markets, always regulated, and are both registered and bearer shares.
In most cases they are bearer shares; on the other hand, registered shares are those belonging to the directors, statutory auditors and general managers of the company that issued the savings dividend shares.
In this case, the option right is guaranteed and also remains on shares of other categories, even if the capital increase does not concern the best savings shares.
Holders of this type of share have the power to:
- Gather in the assembly and discuss topics of common interest
- Appoint a category representative, who has the right to participate and vote in the issuing company’s shareholders’ meetings
- Stock market investment
The savings shares of unlisted companies were substantially placed on the market to encourage investment on the stock exchange, mainly by small and medium-sized savers.
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Precisely because they responded satisfactorily to their needs, therefore, strong interest in the performance alone and almost zero in the exercise of administrative and corporate rights.
On the other hand, investing in the stock market, through the purchase of savings and preferred shares or bonds, always has its charm.
This is why many savers look out into this world, hoping to grow their capital exponentially.
So dear friends, the advice that we at Invest in The Stock would like to give you is to probe the ground well before investing real money, rather rely on experienced professionals in the financial sector, so you can be sure of choosing the shares with peace of mind savings to focus on.
Invest In The Stock, The Editorial Staff
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