Registered and Bearer Equity

Bearer equities are transferred upon delivery whereas registered equities are transferred upon endorsement and delivery.  Bearer equities and registered equities may be traded on Borsa İstanbul if only the company's board of directors authorizes transfer through blank endorsement.

Common and Preferred Equities

Common equities grant equal rights to their holders. Unless otherwise stipulated in the articles of association, equities are common equities.

Preferred equities provide their holders with a set of preferential rights with regard 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 of 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 sales 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

Equities issued at par (nominal value) are called non-premium equities, whereas equities issued at a price higher than the nominal value are called premium-equities. 

Companies listed on Borsa İstanbul are subject to authorized capital system, and can issue premium equities provided that it is permitted in their articles of association and there is a decision of the board of directors to that effect.

Founder Shares and Dividend Shares

Founder shares are shares that entitle the holder 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 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 the decision of the company's general assembly and do not represent any capital interest.