What is the stock insurance company?

shares insurance company is a publicly traded company that works in the insurance industry. The Company issues shares that the public can purchase to help increase capital for the company. This allows the stock insurance company to use another capital to expand the company in a way that is better than a mutual insurance company. It is a type of security that consists of business capital ownership, which differs from preferred shares that offer priority in dividend salaries in case of liquidation. The ordinary shares provide voting rights to the parties. This allows individuals who hold these shares, influence the decision of the insurance company and also to elect the Board of Directors. Some companies even allow common shareholders to help set company goals and policies, as well as approve events including shares. When the company gets a profit or finds itself with a surplus, the money can be either reinvested in society or paid andccionists as dividends. Similarly, investors can be made valuation payments if a certain asset of the company receives value. As a result, the joint -stock company is a profitable company in the area of ​​investing.

Real Insurance Company policyholders can also be shareholders, but this is not necessary. Many policyholders find that when investing in a company like an insurance company, it makes sense to buy insurance from the company. In this way, the individual invests in his own stock portfolio. These funds can be said that they are ultimately used as a possible policy payment for their own insurance claims.

The main advantage of the OCK stproještěšťovní company over the mutual insurance company is the fact that it works with the financial market to raise further funds. Mutual insurance companies use the fact that all policyholders pay in a large fund in which payments can be made to customersn. The main challenge of this model is the lack of ability to improve its capital position. Many of the companies that used this business model have moved to the stock model to maintain the market share. When switching to this type of business, the joint -stock insurance company is able to appreciate its assets and issue public offers to obtain another capital that the company will further expand.