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| {{g}}An [[income]] payment to a shareholder. Usually discretionary, and a large feature of the cash equity market, and a source of endless complication and fun when trying to repliocate equity securities [[Synthetic equity swap|synthetically]], whether through [[Index - Equity Derivatives Provision|indices]], [[equity derivatives]] or [[futures]]. | | {{g}}An [[income]] payment to a shareholder. Usually discretionary, and a large feature of the cash equity market, and a source of endless complication and fun when trying to replicate equity securities [[Synthetic equity swap|synthetically]], whether through [[Index - Equity Derivatives Provision|indices]], [[equity derivatives]] or [[futures]]. |
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| ===Metaphysical theory=== | | ===Metaphysical theory=== |
| {{share capsule}}A share is a a [[contract]] between a company and an investor representing a transferable ownership ownership interest in the company. Shares are issued in return for capital — not [[indebtedness]]: you can’t get your money back, and you can never redeem the share: the share itself has a value which you can only realise by sale to someone else. For as long as you hold it, a share represents full-blown ownership of a ''pro rata'' portion of the company, but it has an option element: you get all the profits, but your exposure to the company’s losses is stopped out at the value of capital contributed on subscription of the share. In other words, if the issuer is insolvent — its [[Liability|liabilities]] exceed its [[assets]] — shareholders are not responsible to creditors of the company for the shortfall.<ref>This assumes the shares are “fully paid up” as to capital. Where shares are “partly paid” holders may be obliged to meet a capital call. Once they have and the shares are fully paid, that is the extent of the shareholders’ contractual liability.</ref> As a shareholder’s liability for company debts is “[[limited liability|limited]]” to the value of capital contributed, we call these “[[limited liability company|limited liability companies]]”.<ref>Compare with a partnership, where each partner remains jointly and severally liable for all the debts of the partnership. In recent times limited libility partnerships have become the thing. These start to look a lot like private limited companies, and you wonder whether there hasn’t been a little sloppiness in the thinking that led to their invention. I.e., ''if you want your liability limited form a company and don’t have a parnership you dolt''.</ref> | | {{share capsule}} |
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| {{sa}} | | {{sa}} |
| *{{eqderivprov|Dividend}} - {{eqdefs}} | | *{{eqderivprov|Dividend}} - {{eqdefs}} |
| *{{gmslaprov|Manufactured payments in respect of Loaned Securities}} - {{gmsla}} | | *{{gmslaprov|Manufactured payments in respect of Loaned Securities}} - {{gmsla}} |
| | {{ref}} |