Commercial risk and Share: Difference between pages

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1. ''International trade''. 
A share in a company is a proportionate ownership right in the company.
Commercial risk arises from a foreign business partner’s insolvency or unwillingness to pay its debt or to perform according to the contract.  For example the insolvency or unwillingness of a bank, customer, supplier or guarantor.


Letters of credit and documentary collections can provide some measure of protection against commercial risks of this kind.


2. More generally, risk arising directly from, or in the context of, the commercial activities of the business.
Its main features normally include:
 
- A right to a proportion of any residual assets of the company on a liquidation.
 
- A right to receive any dividends declared.
 
- A right to vote in general meetings of the company.
 
- An obligation to subscribe equity capital of a fixed amount per share.
 
 
Historically, shares were evidenced by paper certificates. 
 
More commonly, they are now recorded in electronic form.
 


== See also ==
== See also ==
* [[Documentary collection]]
* [[Allotment]]
* [[Letter of credit]]
* [[Common stock]]
* [[Concert party]]
* [[Control]]
* [[Dilution]]
* [[Dividend]]
* [[Equity]]
* [[Equity capital]]
* [[Equity market]]
* [[FA 1985 Pool]]
* [[Flowback]]
* [[Issued share capital]]
* [[Liquidation]]
* [[Ordinary shares]]
* [[Preference shares]]
* [[Security]]
* [[Share capital]]
* [[Shareholder]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]
[[Category:Financial_products_and_markets]]

Revision as of 13:10, 17 December 2020

A share in a company is a proportionate ownership right in the company.


Its main features normally include:

- A right to a proportion of any residual assets of the company on a liquidation.

- A right to receive any dividends declared.

- A right to vote in general meetings of the company.

- An obligation to subscribe equity capital of a fixed amount per share.


Historically, shares were evidenced by paper certificates.

More commonly, they are now recorded in electronic form.


See also