The shares are further divided into different classes depending on the rights and privileges of each class. The most common are ordinary shares, which represent direct ownership in a company.
These shares carry voting rights, allowing shareholders to participate in meetings and shape decisions made by the company’s board of directors.
Preference shareholders generally prioritise dividends and rights over assets in liquidation, but also generally have no voting rights. Special classes of shares may also be issued for other reasons, such as employee shares or proxies that give the holder the option to purchase a certain number of shares at a pre-agreed price within a given period.
Where to buy shares?
Shares can be bought and sold on stock exchanges or over-the-counter markets. Investors often buy stocks to diversify their portfolios and increase their funds, but they can also be used as a source of income by paying dividends.
However, investing in publicly traded companies carries risk and investors should understand what company they are investing in before buying shares. This includes understanding the company’s financials, management team, competitive advantages and industry outlook. In addition, investors should examine the fees associated with trading stocks.
Investing in stocks is a long-term commitment that requires constant monitoring of market conditions and your investments.
Where to trade public shares in Bulgaria?
Stocks in Bulgaria are traded on the Bulgarian Stock Exchange (BSE). Investors can access the BSE through a broker-dealer or direct account. By opening a standard account, investors can trade stocks independently and view offers and investment history in real time. Brokerage firms also offer various trading services that can help investors make better decisions and manage their portfolios more efficiently.
What are the fees for trading shares in Bulgaria?
Trading on the Bulgarian Stock Exchange involves various fees, including commissions and transaction costs. Additional fees may include broker-assisted trading fees and other administrative costs. Investors should contact their brokerage firm to determine the fees they will charge for trading stocks. In addition, before investing, they should make themselves aware of any costs associated with their stock transactions.
It’s essential to do your research before investing in shares and make sure you understand all the risks and charges involved.
Types of shares
Companies often have multiple classes of shares that offer shareholders different rights, such as voting rights and the ability to collect dividends or capital.
These are the most common type of shares and are known as ordinary shares. Owners of these shares have voting rights, a share of profits through dividends and can claim assets if the company is liquidated.
They are another type of security that gives shareholders certain preferences when it comes to dividends or proceeds from liquidation. They can also come with a predetermined fixed dividend rate.
Hybrid instruments are a combination of stocks and bonds that offer the benefits of both types of investment. These can include convertible bonds, which allow bondholders to convert their debt into common stock at a set price, or preferred stock, which offers shareholders the option to convert their holdings into debt.
Options and financial derivatives – futures
A derivative is something that allows traders to hedge their positions or speculate on the movements of the underlying asset. Options provide the right, but not the obligation, to buy or sell an asset at a specified price within a specified period. Futures are contracts that call for the delivery of certain maintenance in the future at an agreed price. Both allow traders to fix the desired price, reducing the risk of unexpected market fluctuations.
It is considered one of the most reliable investments, offering potential returns that exceed those of many other asset classes. Real estate investments can be made through direct ownership or mutual funds.