What is a share?
A share represents a stake in a company's share capital. As a shareholder, you are entitled to profits and voting rights and are a co-owner of the company.
The share at a glance
Not all shares are structured the same way. In principle, shares can be distinguished by two criteria: how the stake in the share capital is structured and the form of ownership attribution.
Like any investment, a share involves both opportunities and risks. On the one hand, you can benefit from profits and price performance; on the other, the return depends on the company's future profits.
Co-owner
Direct participation in the company
Voting right
Co-determination at the AGM
Type of capital
Equity
Share variants
No-par-value share
Divides the share capital into a fixed number of equal shares. With 1,000 no-par-value shares issued, each share represents one-thousandth of the company – particularly transparent and flexible.
Par-value share
Carries a fixed nominal value, e.g. 1 euro. The sum of all nominal values makes up the company's share capital.
Registered share
The shareholder is listed by name in the company's share register. Today represented digitally in securities accounts and registers.
Bearer share
Carries no name – whoever holds the share is deemed entitled. Today likewise managed digitally in securities accounts and registers.
Return opportunities
Dividend payments
Distribution when the company makes a profit
Potential capital appreciation
By selling at a higher share value
Unlimited term
Permanent participation in the company
Advantages
For investors
Direct participation in the company with full voting rights possible (depending on the type of share)
Transparent ownership structure and structured information rights
Potential for long-term value growth and annual dividends
A say in strategic decisions at the general meeting (depending on the type of share)
For issuers
Raising equity without any repayment obligation
Strengthening the capital base and improving the balance sheet structure
The opportunity to actively involve your own community in the company's success
An attractive financing instrument for growth-oriented companies and scaling projects
Risks
Dividend not guaranteed
A distribution is only made if the company generates profits and the majority of shareholders decides on the payout.
Price risk
The value of the share depends on the company's future performance. An increase in value is not guaranteed.
Risk of total loss
In the event of the company's insolvency, shareholders can lose their entire invested capital.
Risk warning
Acquiring this investment involves significant risks – up to total loss. Inform yourself carefully before investing and seek professional advice.
Invest in shares now
Discover current share offerings on CONDA Capital Market and become a co-owner of innovative companies.