Nominal value of shares and shares in a joint-stock company

The nominal value of shares is the initial value at which the shares are sold when the joint-stock company is established. In other words, this is the value that is indicated on the shares at issue. It should be noted that the conventionality of the nominal value in relation to the real led in developed countries to the fact that it became permissible to issue shares without specifying it, that is, only the number, series and class of shares are indicated.

The nominal value may vary. In case of its increase, it is necessary to register the issue of shares with a new nominal value in the relevant body, and withdraw the old shares or their certificates from circulation and issue new certificates and shares to all shareholders.

In contrast to the nominal, the price of the share is the price that was set on the market. Also it is called the exchange value. That is, at this price, shares are bought and sold. If the nominal value is higher than the market value, then its owner receives a premium. If lower, then it is called a discount. Very rarely happens when these costs are equal. This situation is called alpari.

In the balance sheet, the issue of securities is accounted for initially at nominal value. Then the subsequent sale of shares at a price higher than the nominal will lead to the emergence of additional capital. Therefore, this indicator, above all, is important for accounting.

If shares are quoted on stock exchanges, then they will be sold at the exchange rate, which should be determined in US dollars. When quoting a stock, the price may rise or fall. Often it happens that liquid stocks easily become empty papers, so the broker's art is to have time to sell such shares in time and not to lose investments. Also, the value of shares may increase, then the broker should buy such shares on time to get a good profit. This business is associated with serious risks. You can both win from the sale of shares a lot of money, and lose your investment.

In addition, the concept of "nominal value" is applicable to the value of coins. In this case, the denomination will differ not only from the value in the market, but also, first of all, from the collection value, which is determined by the auctions. As a rule, the nominal value of investment coins is often generally of a purely formal nature, since its value is determined by the weight of the noble metal that is part of it.

Many joint-stock companies would like to sell their shares, but who will really need them? In the Russian Federation, demand is predominantly for blue chips. The shares of OAO Gazprom, Norilsk Nickel, and NK Lukoil will always be respected. But it should be noted that large blocks of shares of such companies go to Moscow or even abroad. Most of the small shareholders do not want to invest in large joint-stock companies, believing that their voice will not have much weight. After all, the nominal value of the stake is important here. The larger the proportion, the greater the weight. But, accordingly, the more the company's value, the more the controlling stake will cost.

In order to protect the interests of both the joint stock company and shareholders, the law establishes serious obstacles to the acquisition of a controlling stake by one person. Concentration of a significant share of shares in the same hands can deprive small shareholders of the incentive to purchase securities, as all decisions of the general meeting will be determined by decisions of one person.

In the company's charter, the maximum total nominal value, the maximum number of shares, the maximum number of votes per shareholder can be determined.