BIG ENCYCLOPEDIA FOR CHILDREN AND ADULTS
What is a share? Detailed answer Directory / Big encyclopedia. Questions for quiz and self-education Did you know? What is a promotion? Shares or bonds are securities that commercial companies sell to the public to raise money. To open a new company, to purchase new equipment for an existing company, a large amount of money is required. To raise that money, the company sells thousands, sometimes millions, of shares. When a person buys a share, he becomes one of the owners of the company. As an owner, a shareholder, he hopes to receive dividends, or a portion of the company's profits. The size of the dividend may vary from year to year, depending on the type of activity that the company was engaged in in a given year. There are two types of shares: ordinary shares and preferential shares. The owner of an ordinary share has the right to attend an annual meeting of shareholders, to vote in the election of directors of the company. Preferential share is so called because its owner has certain rights that the owner of ordinary shares does not have. When dividends are paid, the owners of preferential shares have the advantage. Dividends on preferential shares are paid in predetermined amounts. While dividends on ordinary shares are paid simply depending on how the company was doing for a certain time. If the company breaks up or goes out of business, the money is paid first to the holders of preferential shares, and then ordinary ones. When a person buys a share or bond, he buys them from another investor. When he sells them, he sells them to another investor as well. The market where shares are bought and sold is called an exchange. Shares are bought and sold through brokers. His duty is to buy and sell shares of investors. The share price can rise or fall for many reasons related to partner companies, commercial terms of transactions, and so on. Author: Likum A. Random interesting fact from the Great Encyclopedia: What is silicon? The Earth's crust - the soil that people walk on and live on - is made up to a large extent of silicon. Silicon is the second most abundant chemical element on Earth, but it is never found in its free state. This means that it is always connected to one or more other elements. Silicon is the main element in all rocks, with the exception of one variety - carbonates. Clay, for example, contains an average of 50 percent silicon, and you can be sure that most of the stones you see have the same amount of silicon. Silicon has been found on stars and even in plants. The largest amount of silicon in the world is found in silica, which is made up of oxygen and silicon. Quartz, jasper, opal, sand are all varieties of silica. In ancient times, people used silica to make glass. Silicon exists in two forms: crystalline and powdered. Pure silicon is not widely used, so it is rarely produced. But various silicon compounds are used in many industries. When sand is combined with coke, silicon carbide is formed, which is usually called carborundum. It is an extremely hard substance and is used for grinding and polishing metals. Silicon is also added to steel because it gives steel many useful qualities. Steel can contain from 2 to 6% silicon. When steel is used in the manufacture of chemical equipment, it contains 6% silicon, which makes it much more resistant to corrosion than any other steel. When steel contains 2% silicon, it becomes indispensable for electrical equipment, since in this case less energy is required to magnetize the steel. Silicon compounds are also widely used in the chemical industry for a variety of needs.
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