Registered and Bearer Stocks
Bearer stocks are transferred upon delivery whereas registered stocks are transferred upon endorsement and delivery. Bearer stocks, and registered stocks, in the presence of a decision of the company’s board of directors authorizing a transfer through blank endorsement, may be traded on ISE.
Common and Preferred Stocks
Common stocks grant equal rights to their holders. Unless otherwise stipulated in the articles of association, stocks are common stocks.
Preferred stocks provide their holders with a set of preferential rights with regards to the sharing in the profit and casting votes at the general assembly.
Bonus and Paid-up Shares
A bonus issue is a distribution of free shares to shareholders in exchange for an amount which is added to the capital from the company's internal resources. It does not lead to an inflow of outside funds. Shares issued for this transactions are free shares.
A rights issue is the sale of “paid-up” shares issued by a company to supply new funds at their nominal value or a higher price. Paid-up shares can be sold to existing shareholders (pre-emptive right) as well as to other investors.
Premium and Non-premium Stocks
Stocks issued at par (nominal value) are called non-premium stocks, whereas stocks issued at a price higher than the nominal value are called premium-stocks.
Companies listed on the ISE are subject to the authorized capital system, and can issue premium stocks providing it is permitted in their articles of association and there is a decision of the board of directors to that effect.
Founder’s Shares and Dividend Shares
Founder’s shares are shares that entitle to participate in part of the company’s capital in consideration of the foundation services as per the provisions of the articles of association and that are always registered in the names of the founders. Founder’s shares neither represent a certain capital interest nor vest any right to participate in the company’s management.
Dividend shares are given in consideration of certain services and receivables to certain people depending on a decision of the company's general assembly and do not represent any capital interest.