Common stock

A common share is a security issued by a joint-stock company , giving the right to receive non-fixed dividends in the case of the relevant decisions of the Shareholders Meeting and in the vast majority of cases of the Board of Directors (Supervisory Board).

In addition, restrictions on the payment of dividends may be imposed by applicable national law. For example, in Russia payment of dividends is prohibited, if for the reporting period the financial statements do not show the net profit of the enterprise or in the event of court decisions (including international arbitration courts).

Dividends are paid from the part of the profit remaining after paying interest to holders of preferred shares . Holders of ordinary shares, as a rule, have the right to vote at a general meeting of shareholders . Dividends on ordinary shares are not guaranteed. Trading in ordinary shares is carried out on the stock exchange or over-the-counter methods. The market value of ordinary shares in Russia is often higher than the value of preferred ones .