Equity is more important.
1. Shares represent partial ownership of the company and are divided into common shares, preferred shares, and incompletely redeemed equity. Equity is the right that shareholders enjoy based on their shareholder qualifications, obtain economic benefits from the company, and participate in the company’s operation and management.
2. Shares refer to the rights and interests of stock holders that correspond to the shares they hold and the right to assume certain responsibilities. The rights claimed against the company according to the status of shareholders are equity. Equity in a stock limited company is a type of stock option.
3. Shareholders are the main body of equity. Generally speaking, a company is an economic organization composed of capital. Therefore, both natural and legal persons can become shareholders.
4. A stock is the smallest and equal measure of a company’s capital. The capital of the enterprise is divided into shares, and the issued shares are the total capital.
5. Stocks are only available in limited liability companies. Holding shares in a company limited by shares means owning a certain percentage of shares. In a limited liability company, the capital is divided proportionally, not called stock, but determines the proportion of equity in proportion.
6. What are the benefits of share conversion? Share conversion refers to the company’s conversion of capital reserves into share capital. The share capital conversion does not change the shareholders’ equity, but increases the size of the share capital. Share conversions can have both advantages and disadvantages. In the case of better market conditions, listed companies carry out the transfer operation, investors hold this part of the stock, and even increase their positions, which increases the strength of the buyer to a certain extent and causes the stock price to rise.
7. In the case of poor market conditions, the listed company will carry out the transfer operation, and the investor will sell this part of the stock, which will increase the strength of the seller to a certain extent and cause the stock price to fall. At the same time, after the share conversion, the size of the stock increases and the price of the stock unit falls, thereby lowering the investment threshold and allowing more people who are optimistic about the company to participate.