What Is Equity Trading?

Equity transactions mainly refer to equity transfer transactions. Equity transfer refers to a civil legal act in which a company's shareholders transfer their shares to others in accordance with the law, so that others become shareholders of the company. China's "Company Law" stipulates that shareholders have the right to transfer all or part of their equity through legal means. Equity is the right that an investor enjoys when investing in a company. It comes from the investor's ownership of the investment property. The investor's investment in the company is essentially a limited grant of investment property rights. The property rights granted to the company become the company's legal person's property rights over the investment property. The retained rights and derived rights derived therefrom become the investor's equity.

Equity transaction

The equity content is relatively rich, mainly including: (1) shareholder identity rights; (2) participation in decision-making rights; (3) selection and supervision of managerial rights; (4) asset income rights; (5) right to know; (6) proposals, The right to convene and preside over extraordinary meetings of the shareholders 'meeting; (7) give priority to the transfer and subscription of new equity; (8) the right to transfer capital or shares; (9) shareholders' right to sue.

Generally speaking, the shareholdings owned by shareholders are the same in nature and differ only in the share, but the articles of association of the company can stipulate the content of the shareholding. .

In addition, stocks can be divided into preferred stocks and ordinary stocks. Preferred stocks usually set dividend yields in advance and distribute dividends preferentially, but they cannot be listed and circulated, and they cannot participate in decision-making.

Equity transactions, mainly refers to

The realization of equity transfer generally requires the following procedures:

(1) First of all, it is necessary to sign an Equity Transfer Agreement with a third party (transferee), agreeing on the transfer price of equity, transfer, creditor's rights and debts, payment of equity transfer payments, etc. Signed and stamped.

(2) The other shareholder is required to issue a commitment or certificate to waive the preemptive right to transfer the relevant shares to a third party.

(3) The old shareholders 'meeting needs to be convened. After the old shareholders' meeting has agreed to vote, the relevant party of the transferor is removed. The voting proportion and voting method shall be carried out in accordance with the original company's articles of association. chapter.

(4) New shareholders 'meetings need to be convened. With the consent of the new shareholders' meeting, appointments of new shareholders should be appointed. The voting proportion and voting method shall be in accordance with the provisions of the company's articles of association. Discuss the new Articles of Association and sign and seal the new Articles of Association after adoption.

(5) Within 30 days after signing the above documents, pay the relevant taxes to the tax department, and then submit the Equity Transfer Agreement, the Resolution of the Shareholders' Meeting, the new Articles of Association and other documents to the Industry and Commerce Bureau where the company is registered. Representatives appointed by the shareholders' meeting handle the registration of equity changes.

Equity refers to the rights and interests of holders of shares corresponding to the proportion of shares they own and the power to assume certain responsibilities. The main body of equity is shareholders. The company is a joint venture economic organization, and both natural and legal persons can become shareholders.

Equity transactions are mainly equity transfer transactions between equity holders and investors who intend to hold equity. Generally there are cash transactions, stock or asset replacement transactions. The stock trading of a listed company refers to the buying and selling of stocks that have been issued and listed by stock investors at market prices. There are only two stock exchanges in mainland China, namely the Shanghai Stock Exchange and the Shenzhen Stock Exchange.

The place of equity trading of non-listed enterprises is generally carried out in relevant state departments, equity trading centers in charge of local governments, equity exchanges, and stock exchanges.