shares - The IPO Market Is Open Again—at Least for the Moment

Shares, also referred to as stocks, are units of ownership in a corporation. They represent a claim on a portion of the corporation’s assets and earnings. Shareholders are individuals or organizations that hold shares in a corporation and are entitled to receive a portion of the company’s profits in the form of dividends, as well as to vote on major company decisions.

History of Shares

The concept of shares dates back to the early 1600s when companies, often formed to support overseas trade, needed large amounts of capital to fund their ventures. The East India Company, founded in 1600, was one of the most famous of these companies. It raised funds by selling shares to investors, many of whom never set foot outside of England. These investors received dividends from the company in return for their investment.

The Dutch East India Company was another notable company that used the sale of shares to finance their operations. It was the first company to issue shares and bonds to the public on a large scale. The issuance of shares allowed individuals of all social classes to invest in a company and benefit from the company’s profits.

As companies grew in size and complexity, shares became an increasingly valuable and desirable asset, leading to the development of formalized stock markets. The Amsterdam Stock Exchange was the first stock exchange in the world, founded in 1602, and it facilitated trading of shares in the Dutch East India Company. Other major stock exchanges include the New York Stock Exchange, the Tokyo Stock Exchange, and the London Stock Exchange.

Types of Shares

There are several types of shares that a company may issue, each with its own unique characteristics and benefits.

  1. Common Shares: Common shares are the most commonly issued type of share. They provide shareholders with voting rights at annual general meetings, as well as a portion of the company’s profits through dividends.

  2. Preferred Shares: Preferred shares are a type of share that provides shareholders with preferential treatment over common shareholders. These shares typically have a fixed dividend yield and do not offer voting rights.

  3. Dual-class Shares: Dual-class shares are common shares that are divided into two classes, with one class having greater voting rights than the other. This allows founders and management to retain control of the company while still offering shares to the public.

  4. Voting Shares: Voting shares are shares that provide their holders with voting rights at shareholder meetings. This type of share allows shareholders to participate in the decision-making process of the company and influence major decisions.

  5. Non-voting Shares: Non-voting shares typically have all the same rights and benefits as ordinary shares, except for voting rights. Non-voting shares are often used by companies to raise capital without diluting the voting power of existing shareholders.

Benefits of Owning Shares

There are several benefits to owning shares in a company:

  1. Capital Appreciation: If the company performs well, the value of the shares can increase, providing shareholders with a capital gain when they sell their shares.

  2. Dividend Income: If the company pays a dividend, shareholders can receive a portion of the company’s profits in the form of cash payments.

  3. Ownership: Owning shares in a company provides individuals with ownership and a sense of pride in being part of a successful company.

  4. Voting Rights: Shareholders have a say in the management and decision making of the company, giving them a sense of control over their investment.

Risks of Owning Shares

There are also risks associated with owning shares in a company:

  1. Market Risk: The value of shares can fluctuate based on market conditions, economic factors, and the performance of the company.

  2. Dividend Risk: Companies are not required to pay dividends, and if they do, the amount can fluctuate based on the company’s financial performance.

  3. Company Risk: Owning shares in a single company exposes shareholders to company-specific risks, such as management decisions, product recalls, and competition.

  4. Liquidity Risk: Shares can be difficult to sell quickly, particularly in times of market uncertainty, which can result in a loss of capital.


Shares provide individuals with the opportunity to own a piece of a company. By buying shares, individuals can profit from the company’s success and have a say in its decision-making process. However, investing in shares is not without risk. Before investing, individuals should understand the risks and benefits associated with owning shares and seek the advice of a financial professional.

6do Encyclopedia represents the inaugural AI-driven knowledge repository, and we cordially invite all community users to collaborate and contribute to the enhancement of its accuracy and completeness.
Should you identify any inaccuracies or discrepancies, we respectfully request that you promptly bring these to our attention. Furthermore, you are encouraged to engage in dialogue with the 6do AI chatbot for clarifications.
Please be advised that when utilizing the resources provided by 6do Encyclopedia, users must exercise due care and diligence with respect to the information contained therein. We expressly disclaim any and all legal liabilities arising from the use of such content.

Indian shares set to open higher on inflation boost, FII buying


23-05-16 02:45

Indian shares are predicted to open higher on Tuesday, thanks to decreasing domestic inflation and increasing foreign institutional buying in equities. The Nifty 50 index closed at a near-five month high yesterday due to positive earnings and favourable inflation data. Foreign institutional investors extended their buying streak for the thirteenth session on Monday. The Wall Street equities also rose ahead of talks between the US President and House Republicans regarding raising the debt ceiling.
‘Bangkok Spring’ sets up showdown over role of Thai monarchy

Japan Times

23-05-16 02:09

Thai political party Move Forward has suggested changes for Article 112 which restricts criticism of Thailand's monarchy, breaking a taboo and prompting speculation that pro-democracy movement gains could result in a conservative backlash that sparks protests and stifles the economy. Pita Limjaroenrat, the party leader of Move Forward, has sworn to change Article 112. However, the Constitution Court could still challenge any moves to amend the law. The odds makers suggest Move Forward will have a difficult job of implementing meaningful change without a fight.
Rakuten shares slump 6% on expected $2.2 bln new share issuance


23-05-16 01:02

Shares in Japanese e-commerce and fintech firm Rakuten Group slid by 6% as the firm's board is expected to consider a measure to stave off losses arising from its mobile business. It is believed the company is considering a $2.2bn capital raising that could lead to a share dilution, hence a sell-off. Rakuten Group posted a loss in the last quarter, while it has offloaded its stake in the Seiyu food store chain to private equity firm KKR & Co; it also floated its banking unit last month.
Vodafone plans 11,000 job cuts

Financial Times

23-05-16 07:19

Vodafone is set to cut 11,000 jobs as part of an effort by recently appointed CEO Margherita Della Valle to improve the telecoms firm's fortunes after a poor performance in Germany and a fall in share prices. Della Valle said Vodafone “must change” in order to improve its fortunes. The cuts will affect UK staff and those in foreign markets, but Vodafone did not provide a breakdown of the numbers for each category. Revenue edged up 0.3% to $45.7bn, falling short of analysts' expectations, while adjusted earnings before interest, tax, depreciation and amortisation fell 1.3% to $14.7bn.
UK's Boohoo profit halves as shoppers squeezed


23-05-16 06:32

Online fashion retailer Boohoo has announced a fall in annual core earnings of around 50%, thanks to customers shifting back towards bricks-and-mortar stores as the country moves away from pandemic restrictions. Boohoo saw sales surge during the pandemic, just like rivals including ASOS, but costs and competition from brands like Shein have caused issues since. Nonetheless, the company predicts a better year ahead, with 2023/24 projected revenues level or lower and adjusted EBITDA expected to be between £69m and £78m ($88m to $99m).
Australian Strategic Materials gets U.S. buyer for rare-earth alloy

Nikkei Asia

23-05-16 06:27

Australian Strategic Materials has secured an agreement to sell neodymium iron boron alloy from its South Korean metals plant to rare-earth magnet maker Noveon Magnetics in the US. Neodymium iron boron alloy is used in wind turbines and the permanent magnets found in electric vehicles. Under the agreement, Australian Strategic Materials will sell 100 tonnes of the alloy to Noveon until March 2024. The company, which is currently developing its Dubbo mine and processing plant 250 miles northwest of Sydney, is seeking customers and finance for the project.
US debt woes could trigger a return to favour for fund manager specialising in emerging markets


23-05-16 06:00

Emerging markets-focused asset manager Ashmore is being tipped to return to favour, with a share price currently languishing at 234.4p, compared to 2020's peak of 570p and a peak of investments under management of $94.4bn in June 2021. Factors that dragged Ashmore's shares down include: a trend towards growth and technology rather than emerging markets; economic uncertainty and the Ukrainian conflict damping sentiment; and Ashmore's own investments performing below customers' expectations. However, a return to favour for emerging markets, plus scarcity in the debt market, could be a catalyst for Ashmore and the areas in which it invests, according to Questor.
Capital One shares up after billionaire investor Buffett's near $1 bln bet on bank


23-05-16 10:45

Shares in Capital One rose by 7% in pre-market trading after Warren Buffett's Berkshire Hathaway revealed it had taken a stake in the credit provider. Berkshire Hathaway said that it bought 96 million shares at $26 per share, a deal worth roughly $2.5 billion in total.
Home Depot cuts annual sales forecast on slowing demand


23-05-16 10:30

Home Depot has cut its annual sales forecast and has predicted a steeper decline in profit than originally expected, as Americans cut back on purchases of tools and building materials. The company also missed first-quarter sales estimates. Shares of Home Depot fell 4% in pre-market trading after the announcement. Its smaller rival, Lowe’s, also saw shares decline by 3%. The weaker demand is occurring as consumers shift focus away from home renovations and spend their money on travel, vacations and other services.
Futures flat ahead of debt ceiling talks, data


23-05-16 09:58

US stock index futures were expected to be flat on Tuesday as the results from critical debt limit talks and retail sales data are due. Traders have been restrained in their approach amid a White House-Republican disagreement on whether the $31.4tn government debt ceiling is to be raised or not following the deadline looming in just two weeks. With the recent data indicating a slowing down of the US economy, the Federal Reserve has been questioned over its restrictive monetary policy as well as an expected slow phase in the central banks hiking cycle. Stock futures for Capital One Financial Corp rose by 6.8% ahead of the market opening.
India's Kajaria Ceramics beats Q4 profit view on stronger demand


23-05-16 09:43

Kajaria Ceramics reported a 13% rise in consolidated net profit to INR1.08bn ($13.21m) in the quarter ended 31 March, beating analysts’ expectations, due to strong demand for the company's products. The New Delhi-based ceramic tile maker also reported a 9% rise in consolidated revenue from operations to INR12.05bn, but said consolidated core profit margins fell to 14.60% from 15.06% a year earlier due to increased expenses as rising natural gas prices took their toll.
Property insurers warn proposed federal tax change to preferred shares could hurt the sector

The Globe and Mail

23-05-16 09:00

Intact Financial, Canada's largest property and casualty insurance company, has claimed a proposed tax measure in the federal budget would have negative implications for insurers, their consumers and firms attempting to fundraise in capital markets. A recently proposed amendment by the government suggested pressing financial institutions to record tax-exempt dividends received from shares of a Canadian company as business income. The move would raise costs for insurers holding a major portion of preferred shares and make it harder for public corporations to issue new funds from preferred shares.
FTC prepares to block Amgen’s $28.3bn deal for Horizon Therapeutics

Financial Times

23-05-16 15:19

Amgen’s $28.3 billion deal to acquire Horizon Therapeutics is likely to be blocked by the US Federal Trade Commission (FTC), according to Bloomberg’s sources. This would be the first time in more than a decade that the FTC has sought to block a deal in the pharmaceutical sector, and follows the regulator's newfound emphasis under President Joe Biden to crack down on anti-competitive behavior.
Boohoo seeks to reassure investors after slumping to loss

Financial Times

23-05-16 14:18

UK online retailer Boohoo has released its financial results to February 28, with profits down to a pre-tax loss of £91m ($125m) compared with £7.8m the previous year. The electronic fast fashion retailer saw revenues fall by 11% to £1.7bn. The company recently acquired Karen Millen and the Debenhams brands, which it has incorporated into its offering, and is targeting an adjusted underlying profit margin of between 6% to 8% in the medium term. The cross-channel firm is also setting up a distribution centre in the US, cutting delivery times to between three and 10 days.
Saudi Arabia studying another Aramco stock offering -Bloomberg News


23-05-16 13:39

Saudi Arabia is reportedly considering another multibillion-dollar stock offering for its state-owned oil company Aramco, with plans gaining momentum, according to anonymous sources. Aramco, the world's largest oil company, raised $25.6bn in its initial public offering in 2019, and later raised the total to $29.4bn. With Saudi Arabia still the biggest shareholder with a 90.18% stake, Saudi Crown Prince Mohammed Bin Salman has said that more shares could be sold. The country’s Public Investment Fund owns a further 4% stake in Aramco.
Futu, UP Fintech shares fall on plan to remove apps in China

Nikkei Asia

23-05-16 13:13

Chinese regulators have made online brokerages Futu Holdings and UP Fintech Holding remove their apps from mainland China. Following the announcement both firms' US-listed shares fell sharply in pre-market trading, with Futu down over 15%. The move comes as authorities in Beijing continue their clampdown on data security and tighten capital controls. The companies had been warned last year by the China Securities Regulatory Commission that they were conducting unlawful securities business and were subsequently prevented from soliciting new business. The apps will be removed this week, though both firms said users outside mainland China will be unaffected.
Futu and UP Fintech take down trading apps in China to meet CSRC requirements

South China Morning Post

23-05-16 12:19

Futu Holdings and UP Fintech Holding are set to remove their trading apps, Futubull and Tiger International respectively, from app stores in China this week following a crackdown by the country's securities regulator. The China Securities and Regulatory Commission order, issued in December, asked the firms to stop allowing new domestic investors access to global equities, in contravention of Beijing's capital controls. The two online brokers allowed Chinese investors to transact in offshore equities and were “deemed to have operated illegally” by the regulator, Futu and Tiger said.
ASX set to open lower as Wall Street sags

The Sydney Morning Herald

23-05-16 19:20

The US economy is under pressure due to lower-than-expected earnings from Home Depot and the impact of a long-running trade war, which could cause a recession if consumer spending slows. The S&P 500 index dropped 0.2%, the Dow Jones Industrial Average fell by 0.6%, while the Nasdaq Composite rose 0.3% in afternoon trading on Tuesday. Energy producers were among the heaviest weights on the market, while retailers, including Lowe's, fell on reports of disappointing earnings. Pressure is on other retailers, including Target and Walmart, to produce good results.
Blackstone, Thomson Reuters selling $3 billion of London Stock Exchange group shares

The Toronto Star

23-05-16 18:16

Blackstone, Thomson Reuters, Canada Pension Plan Investment Board and Singapore’s sovereign wealth fund GIC are to sell £2.4bn ($3bn) worth of stock in London Stock Exchange Group, offering around 28 million shares, or a 5.1% stake. Blackstone and Thomson Reuters will own about 10.1 million shares after the sale. The shares were oversubscribed within minutes of the sale starting.