Guide to financial terms. Glossary and definition of the most used terms in the world of finance.
Actions (in English Shares o Stock) are financial securities representing shares of the capital of a joint-stock company. They are also known as equity securities, ordinary shares o equities. Actions constitute a form of financial investment by the holder (called shareholder or "shareholder") who, by purchasing them, becomes part of the company (becomes a shareholder) with all rights and obligations. All the shares have the same nominal value, i.e. they represent shares of equal value, and each share represents a fraction of the share capital equal to all the others. Unlike bonds, there is no maturity date or redemption value for stocks. The main place where stocks are traded is the stock market (unless you decide to buy the shares directly from the company or its shareholders).
Actions can be of two types:
- listed if sold and purchased on the Stock Exchange based on the market price
- unlisted if the exchange takes place through a private agreement with the partners
Being a shareholder means being a member of the company and this means participating in the company's economic activity. The return on shares is given by the difference between the purchase price of the share and the sale price, also taking into account any dividends received during the period in which the share was held.