This section mainly introduces the basic characteristics of stocks, which are characterized by risk, stability, liquidity and accountability.

Risk

1、 Any kind of investment is risky, and stock investment is no exception. Whether the stock investor can obtain the expected return depends on the profitability of the enterprise first. Most of the profits will be shared, but less will be shared. When the company goes bankrupt, it may lose money.

2、As a trading partner, stocks, like commodities, have their own prices. Although the fluctuation of stock price in the stock market will not affect the operating performance of listed companies too much, so as to affect dividends and bonuses, the depreciation of stocks will still cause losses to investors.

In addition to the operating conditions of the enterprise, the stock price is also affected by many factors, such as economic, political, social, and even human factors. It is in a constantly changing state, and the phenomenon of big ups and downs also occurs from time to time. Therefore, investors who want to enter the stock market must be cautious.

stability

Stock investment is a long-term investment with no time limit. Once the stock has been purchased, as long as the stock issuing company exists, no stock holder can withdraw his shares or ask the stock issuing company to withdraw the principal. Similarly, the shareholder identity and shareholders' equity of the stock holder cannot be changed, but the stock can be sold through the stock exchange market and transferred to other investors to recover their original investment.

Liquidity

1、 Shares can be transferred, bought or sold at any time on the stock market, or inherited, donated or mortgaged, but cannot be withdrawn. Therefore, stocks are also a kind of liquid assets with strong liquidity.

2、 It is precisely because of the strong liquidity of stocks that stocks have become an important financing tool and continue to develop. The transfer of bearer shares can achieve the legal effect of transfer as long as the shares are delivered to the transferee; Registered shares can only be transferred after the seller signs and endorses them.

3、 Stock certificate is the specific form of stock. Shares can only be issued and listed with the approval of the relevant national departments, and their face value must have some basic content. Stock certificates must be standardized in terms of making procedures, recording contents and recording methods and conform to relevant laws and regulations and the Articles of Association.

4、 The face value of a listed company's stock certificate shall contain the following contents:

① The full name of the company limited by shares that issued the shares and the date and address of its registration.

② The par value of a share and the number of shares it represents.

③ The total number of shares issued, the number of shares and the amount of each share.

④ The date of issue of the shares and the serial number of the shares. In the case of registered shares, the names of the shareholders shall be indicated.

⑤ The signature and seal of the chairman or director of the stock issuing company, the signature and seal of the issuance registration authority approved by the competent authority, and some words such as ordinary shares or preferred shares need to be indicated.

⑥ Notes that the stock issuing company deems necessary. Such as indicating the procedures that must be gone through when transferring shares, the registration and address of shares, and the content of priority of preferred shares

⑦ A form printed for the transfer of shares.

Responsibility and authority

According to relevant regulations, the holder of shares is the shareholder of a joint stock limited company. The size of the shareholder's rights depends on the number of shares held. It has the right and obligation to participate in the profit distribution of joint stock limited companies and assume limited liability. Have the right to attend the general meeting of shareholders, elect the board of directors and participate in the company's business decisions through their agents.

Shareholders may receive dividends from a joint stock limited company on the basis of their shares, and enjoy the right of claim and liability. When the company is dissolved or bankrupt, the shareholders shall bear limited liability to the company, and the shareholders shall bear the limited liability for paying off debts to creditors according to the proportion of shares they hold. After the creditors' debts have been paid off, the shareholders of preferred shares and ordinary shares can also claim for the repayment of the remaining assets from the Company in proportion to their shares, but the shareholders of preferred shares should have priority over the shareholders of ordinary shares. Ordinary shares have the right to claim for repayment only if there are still remaining assets after the claim of preferred shares.

Shareholders holding shares have the right to participate in the general meeting of shareholders of the company, have the right to vote, and can also be regarded as the right to participate in the management; Shareholders also have the right to participate in the profit distribution of the company, which can be called profit distribution right.

Legally speaking, the listed shares must have the above contents.