Types of shares: transfer, rights & capital split

There are many different types of shares, which in turn belong to different categories. For example, a distinction is made between types of shares according to the degree of transferability, or according to the scope of rights, or even according to the method of dividing the share capital. In some cases, the term “order paper” is also used. This simply refers to securities that are registered in a specific name and can change hands by agreement, transfer or endorsement. Incidentally, endorsement refers to the endorsement on such a security, which enables the rights to be transferred in part or in full. The word “order” thus derives from “order”, since the transfer of the share is ordered.

Generally speaking, the value of a share – or a bond or an investment certificate – can be expressed in two terms: On the one hand, there is the nominal value – also known as the face value – which is the numerical value expressed economically in money, as found on banknotes, coins or securities. On the other hand, there is the stock exchange price, the price of securities determined on the stock exchange – in other words, the current market value.

Types of shares by degree of transferability

When distinguishing types of shares according to the degree of transferability, bearer shares and registered shares as well as registered shares with restricted transferability are combined.

• Bearer shares (inh.)
• Registered shares (NA)
• Registered shares with restricted transferability (vink. NA)

Bearer share – transfer by agreement & surrender

Bearer shares – in short: Inh. – are usually made out to the bearer according to their designation and form the standard type among the share types according to the degree of transferability. They can be transferred to a new owner by agreement and transfer, which enormously simplifies the tradability of this type of share. The only restriction is that the shares may only be issued if they are fully paid up.

Registered shares – minimum deposit 25% par value & premium

Registered shares – abbreviated to: NA – are “born” order securities in terms of form. By law, negotiable instruments are regarded as securities. In addition to registered shares, these include cheques and bills of exchange. Registered shares are made out to the shareholder who is listed in the share register. This authorizes him to participate in the Annual General Meeting and to exercise his voting rights. Furthermore, he is the only one entitled to dividend payments for these shares. The minimum payment amount corresponds to 25 percent of the nominal value and the premium. The transfer of ownership of registered shares is effected by endorsement, handover plus transcription in the company’s share register, which places a corresponding burden on tradability.

Registered shares with restricted transferability – transfer with the consent of the company

Registered shares with restricted transferability are abbreviated as vink. NA and represent a special form of conventional registered shares. In terms of features, there are no differences, but a registered share with restricted transferability is only transferable if the company confirms its approval. This is particularly advantageous in order to be able to precisely control the ownership of the shares and to be able to detect early on the intentions of other companies to take over these shares. However, if many small investors are represented by major shareholders – banks, for example – registered shares with restricted transferability can also be transferred easily. If a shareholder leaves the AG, he can even transfer his claims to shareholders unknown to him by means of blank assignment and the signing of a special deed.

Types of shares according to legal scope

In accordance with the distinction between types of shares based on the scope of rights, a distinction is made between ordinary shares and preference shares.

• Ordinary shares (SA)
• Preference shares (VA)

Ordinary shares – original form of the share with fourfold legal entitlement

Ordinary shares – abbreviation: SA) – are the standard type among the types of shares in terms of legal scope and probably represent the most original form of all shares. Ordinary shares contain four main rights: First of all, there is the right to a dividend payment, i.e. there is a legal entitlement to a certain share of the balance sheet profit. Furthermore, ordinary shares allow participation in the general meetings of the stock corporation, including the exercise of one’s own voting rights. A third aspect concerns the right to a share in the liquidation proceeds, according to which a portion of the money from the liquefaction is due to the holder of an ordinary share by operation of law. Last but not least, an ordinary share also entitles the holder to challenge resolutions adopted at the general meeting.

Preference shares – privileges in profit distribution & company assets

Preferred shares – VA for short – are called preferred shares because their features include certain privileges compared with ordinary shares. These are usually either preferential rights in the distribution of profits or special rights with regard to the company’s assets. Preferred shares with multiple voting rights – so-called multiple voting shares – are not permitted in Germany under the German Stock Corporation Act (AktG).

Preferred shares without voting rights – also called non-voting preferred shares – are considered a special form of preferred stock. They are often used to finance equity when a capital increase is not possible due to poor share prices. In compensation for the loss of voting rights, the share holder is offered, for example, a higher dividend or a right of succession, and at the same time the equity capital requirement can be satisfied.

Excerpt from the law – § 12 AktG:

(1) Each share shall confer the right to vote. Preference shares may be issued as non-voting shares in accordance with the provisions of this Act.

(2) Multiple voting rights are not permitted.

Types of shares according to the method of dividing the share capital

If the method of dividing the share capital is considered, a distinction is made between par value shares and no-par value shares. The form and any applicable minimum amounts of the shares are specified in the German Stock Corporation Act (AktG).

• Par value shares
• Quota shares
• No-par-value shares

Excerpt from the law – § 8 AktG:

(1) The shares may be created either as par value shares or as no-par value shares.
(2) Nominal value shares must be denominated in at least one euro. Shares with a lower nominal value shall be null and void. The issuers shall be jointly and severally liable to the holders for any loss arising from the issue. Higher nominal share amounts must be denominated in full euros.
(3) No-par-value shares do not have a nominal value. The no-par value shares of a company participate in the share capital to the same extent. The proportionate amount of the share capital attributable to each share may not be less than one euro. Paragraph 2 sentences 2 and 3 shall apply accordingly.
(4) The proportion of the share capital shall be determined, in the case of par value shares, by the ratio of their par value to the share capital and, in the case of no-par value shares, by the number of shares.
(5) The shares are indivisible.
(6) These provisions shall also apply to share certificates issued to shareholders prior to the issue of the shares (interim certificates).

Par value shares – Money shares from 1 Euro & par

Par value shares – sometimes also called nominal value shares or aggregate shares – are, as the name suggests, denominated in a fixed nominal amount or par value, which is expressed in monetary terms. They may not be issued below par, which means that the nominal value may not be less than the market value. If this is the case, the difference is called a discount. If the par value of a share is above par – i.e. if the par value is greater than the market price – the difference is known as a premium. Par value shares are set at a minimum value of one euro. The sum of the par values results in the share capital of a company.

• Above par: nominal value > market price (difference in premium)
• Par: Nominal value = stock market price
• Below par: nominal value < market price (difference = discount)

No-par-value shares – Quota shares & no-par-value shares

No-par-value shares are a collective term for shares that have no stated par value. A distinction is made between quota shares – as “genuine no-par-value shares” – and no-par-value shares – as “non-genuine no-par-value shares”. Sometimes both types of shares are also referred to as genuine and non-genuine quota shares respectively.

• Quota share: genuine no-par-value (quota) share
• No-par-value share: non-genuine no-par-value (quota) share

Quota shares – shares in the share capital

Genuine no-par-value shares are quota shares whose share in the share capital of an AG is stated in a document, e.g. 1/1,000 or 1/50,000. They therefore represent a fraction of the company’s assets corresponding to the share right and are not, as the name “quota” might suggest, based on a certain minimum amount of the company’s share capital. Accordingly, no nominal value can be calculated for these shares. If the percentage of the share is indicated on the certificate, the quota share is referred to as “speaking”. A “silent” quota share, on the other hand, lacks this notation.

Caution: Although true no-par value quota shares are common in the USA, Canada, Belgium and Italy, among other countries, they are generally not permitted in Germany, as these shares are marketable and can therefore represent an extreme balance sheet concealment.

No-par-value shares – most common type of share since the introduction of the euro

No-par-value shares – abbreviated with o. N. for “without par value” – are considered “non-genuine”, as they are neither denominated in a certain par value nor in a certain quota. They are expressed in terms of quantity as the result of dividing the share capital by the number of shares, whereby their nominal value is calculated fictitiously. Thus, in contrast to quota shares, no-par shares embody a share in the capital stock of an AG and may not fall below a specified minimum amount of one euro per share. They are the most common type of share in Germany and were originally introduced to make the conversion of shares to the euro easier for stock corporations.

AG: foundation, legal form, real estate shares

1. Real estate shares: List of companies
2. Stock corporation (AG)
3. Real estate stock corporation (REIT-AG)
4. Real estate company

Real estate shares: List of companies

Real Estate Shares – Not everyone can afford real estate as a capital investment. Through real estate shares, however, everyone can participate in the real estate market and invest money. The share prices of the big players are rising year after year. Vonovia, Deutsche Wohnen, Dream Global, CBRE and Patrizia are a few of the best known active companies in Germany. In addition, there are more than 25 other companies. We have an overview of the most popular real estate stocks for you as an investor. But first a look at the risks of a stock, the stock market, for beginners and beginners. Now to the list and more on the real estate market, your investment options and all prices at a glance, here in the article on real estate stocks.

• Real Estate Stocks

Stock corporation (AG): Formation, liability, legal form & Co.

Aktiengesellschaft (AG) – The stock corporation is a German legal form founded by at least one person and organized by different bodies. Instead of a managing director, the company is managed by a board of directors consisting of at least one person. As the name already indicates, this legal form of a company primarily stands for stock trading. You would like to start a company alone or together with other people and learn more about company law forms in advance? Then you’ve come to the right place!

• Stock corporation (AG)

Real estate stock corporation (REIT-AG)

Real estate stock corporation / REIT-AG – You don’t find the idea of a stock corporation bad at all and are now wondering how you can combine your capital company with the real estate industry? A real estate company is a company that serves the financing, development, realization, leasing, or marketing of real estate – starting with a single property up to a real estate portfolio in the three or multi-digit range. The management of real estate property or third-party real estate on behalf of third parties can also be handled by a real estate company.

• Real estate stock corporation (REIT-AG)

Real Estate GmbH & Asset Management GmbH

Alternative – In this article you will learn the basics about real estate companies. Briefly explained, a real estate company is a company that has the purpose of leasing, developing, financing, realizing and/or marketing. It doesn’t matter if it is one or more properties. The management of residential and commercial real estate – in its own interest or as a service offered to third parties – is also a popular focus for real estate companies and asset management GmbHs. Find out more about the main advantages and disadvantages of buying real estate and the expected costs.

• Real estate company

Learn more about the popular Spanish island of Mallorca and the most desirable residential areas here!

City and neighbourhoods of Barcelona: Living in Spain

Barcelona is one of the largest cities in Spain and is known as a metropolis. Including the many neighborhoods, a total of over 5.6 million people live in this city. We show you here what you need to know about Barcelona, where the hippest neighborhoods are located and the facts about the capital of Catalonia. Find out why Barcelona is so popular not only with tourists, but also with locals and newcomers and where it is best to live.

• Find out more about living in Ibiza here!

Barcelona on the map: metropolis and city of millions

Barcelona is a city with over a million inhabitants in Spain and is located in the northeast of the country. The city is located directly on the Mediterranean Sea and has its own airport (BCN). Barcelona has an area of 101.9 km² and 1.6 million people live in the city center. Including the neighbouring districts, the population rises to a full 5.6 million people. The large city is a metropolis in Europe and is particularly known for its art and architecture scene. Real estate in Barcelona is also very sought after. On the one hand, one is in the middle of the city center and can therefore experience and see a lot. On the other hand, the city is located directly on the sea, has typically warm temperatures and is therefore ideal as a second home.

• Population: 1.6 million
• Area: 101.9 km²

Eixample, Sarrià-Sant Gervasi &Les Corts: Real estate on the coast

In the following article, you will get to know some of the most famous and most affluent neighborhoods of Barcelona. We’ll show you where the best places to live are, how high the real estate prices are and for whom which neighborhood is best suited. If you are currently looking for a holiday home in Spain, a look at the metropolis Barcelona is inevitable. We’ve done the research for you and found out everything you need to know. Find out here about the most prestigious neighborhoods and their characteristics.

Eixample: exclusive society, art & architecture scene

Eixample is the second district of Barcelona and can be found in the middle of the city. The district is particularly affluent and stands out due to high prices for villas, an exclusive society and impressive architecture. Eixample is particularly modern and offers first-class restaurants and designer shops. The location of the district is also ideal. On the one hand, you can live above all safe and undisturbed, and yet you can quickly get to different places. The airport, the sea or the famous cathedral are, depending on the location, only a few minutes away by car and you are also quickly connected by the public transport network. Eixample is becoming more and more modern and prestigious. The art and architecture scene are very well known and who owns a property in this district, has done everything right.

Price for a villa: 2 million to 3.5 million.

Price for a penthouse: 500.000 to 2 Mio.

Eixample: ideal location in the middle of Barcelona

The district of Eixample is located in the middle of Barcelona and can be found next to districts like Les Corts, Gràcia or Sant Martí. Eixample has an area of 7.46 km² and 268,190 people live in this district. Barcelona Airport (BCN) is also within easy reach and you can be there in 20 minutes by car or 35 minutes by public transport. The famous “La Catedral de la Santa Creu i Santa Eulália” is also 7 minutes away by car. So Eixample is very central and if you own a property in this area, you can reach everything in Barcelona very quickly. If you want to go to the sea, you can reach the nearest beach in about 5 minutes and walk along the promenade.

• Population: 268,190
• Area: 7,46 km²

Sightseeing: Designer shops, restaurants & exciting nightlife

Eixample is first and foremost a prime residential and shopping area in Barcelona and has a lot to offer. Besides some designer shops, however, you will also find a distinct art scene, the best restaurants and exceptional architecture. Eixample is considered a very affluent, safe and above all private neighbourhood. If you own a property here, you can feel safe and relaxed. Nevertheless, the district offers a lively nightlife in trendy clubs and bars. There is also a lot to do during the day. Stroll through the big streets, go shopping and visit a fancy café. With the extensive range of public transport, you are always quickly in different places and very well connected.

• Many designer shops
• Safe, private neighborhood
• Public transport

Here you can see the Casa Mila, one of the most famous sights of Barcelona. Take a digital picture yourself and explore the streets.

Sarrià-Sant Gervasi: impressive views on the outskirts of the city

Sarrià-Sant Gervasi is a district in the northwest of the city of Barcelona and has a very large area with lots of greenery to offer. The place is rather remote from the hustle and bustle of the city centre and is therefore ideal for relaxation and recreation. If you own a property in this neighbourhood, you will be offered a lot more than just an impressive view. Here you will find the privacy you need and can wind down after a busy day. Sarrià-Sant Gervasi is a very pleasant place and has a close-knit community. There is a lot of emphasis on getting along well with each other.

Price for a villa: 1 million up to 8.5 million.

On the map: in the northwest with a lot of green areas

Sarrià-Sant Gervasi is a district of Barcelona and located in the northwest of the city. The district has an area of 20.09 km² and 148,000 people live in this part of Barcelona. This district is surrounded by Grácia and the residential area of Horta-Guinardó. Unlike Eixample, Sarrià-Sant Gervasi is not located in the centre of the city, but rather a bit outside. The majority of the area is also undeveloped and there are many green spaces. Depending on the location, it takes 20-30 minutes by car to get to BCN airport from this neighbourhood. The nearest beach is just over 20 minutes away.

• Population: 148,000
• Area: 20,09 km²

Viewing: exclusive neighborhood, quiet and idyllic

The town of Sarrià-Sant Gervasi is considered particularly quiet and idyllic. Especially in contrast to the busy centre of Barcelona, here you will find the peace and relaxation you need after a busy day. Compared to other districts, Sarrià-Sant Gervasi is particularly large and offers a lot of open space and nature. Especially pensioners feel safe and can relax in the large housing estate. The mountain Tibidabo can also be found here. If you climb it, you will have an impressive view over Barcelona and the wide sea. You also have the possibility to spend the day or the evening in shopping streets, cafés, bars or restaurants. In Sarrià-Sant Gervasi you have many possibilities.

• Learn more about Spain here!

Explore the town and the beautiful area for yourself and get your own impression of the relaxed atmosphere that this place exudes.

Les Corts: affluent business and residential district

The Les Corts district is a very affluent residential and commercial area in Barcelona and is located to the northwest of the city centre. Les Corts is considered a particularly safe and private residential area and is therefore ideal for a property in a large city near the sea. In this neighbourhood, you will mainly find many office buildings and shopping facilities. Stroll through the shops or spend the evening in a restaurant. Public transport is also very strong in Les Corts and you can quickly get to all parts of Barcelona.

Price for a penthouse: 600,000 up to 1.6 million euros

Les Corts on the map: close to the city centre and ideally located

Les Corts is the fourth district of Barcelona, has an area of 6.08 km² and about 83,000 inhabitants live in this neighborhood. Les Corts is located in the north of Barcelona and borders neighborhoods such as: Collblanc, Finestrelles or Eixample. You can reach BCN airport in about 14 minutes by car or in just under 40 minutes by public transport. Depending on your location in Les Corts, you can be at the nearest beach of Barcelona in 20 minutes. Another advantage for all football fans is the Camp Nou stadium of FC Barcelona, which is also located in Les Corts.

• Population: 83,000
• Area: 6,08 km²

Cityscape: private, safe and many recreational opportunities

Les Corts is mainly considered the business centre of the city of Barcelona and is therefore lined with skyscrapers and office buildings. There are few small streets with boutiques in this part of the city, but there are two large shopping centers. Among others, the shopping centre L’illa is very famous and is modelled on the Rockefeller Center in New York. Here you will find numerous designer shops as well as food options such as sushi and tapas bars.

Eixample, Sarrià-Sant Gervasi &Les Corts: Real estate in Barcelona

If you are currently looking for a property in Spain, you should definitely take a look at the million city of Barcelona on the Spanish mainland. Here, life by the sea and in the city are combined with each other. This has many advantages and the different neighbourhoods offer optimal locations for singles, couples, families or even retirees. If you want a holiday home by the sea and still like the hustle and bustle of a big city, you will certainly find it in Barcelona.

• Tip: Have a look at real estate on Formentera!

Conclusion, comparison & summary: Where is the best place to live?

Eixample: Here you will find the wealthiest population of the city. There’s a lot on offer in this district. In addition to a fancy art scene, Eixample is home to many designer shops, high-class restaurants and unique architecture. It’s a very safe and private neighbourhood, but still very well connected.

Sarrià-Sant Gervasi: This is definitely quieter and properties in this neighbourhood are more isolated from the hustle and bustle of the city centre. Sarrià-Sant Gervasi is also a very private residential area with a close and exclusive neighbourhood. The place offers beautiful views and a lot of tranquility, as well as some designer boutiques and many restaurants.

Les Corts: is considered an affluent residential and commercial area. This residential area is considered the safest in the whole of Barcelona. If you own a property here you are close to the city centre and very well connected. In Les Corts you will also find a large shopping centre with many designer shops and fancy restaurants.