Stocks, one of the fundamental instruments of the capital market, are securities representing the ownership share in joint-stock companies and limited partnerships with shares. In addition to these partnerships, according to our country's legislation, some institutions established by special laws can also issue stocks. However, the securities traded in the financial market are stocks belonging to joint-stock companies.
The most significant advantage of financing through stocks is that the company does not incur any cost, and since stocks are perpetual, there is no obligation such as principal repayment. Stocks represent a certain proportion of the company's capital, and the total nominal value of the stocks constitutes the company's initial capital. Stocks can also change hands, but changing hands is quite difficult.
