Equity

3. The capital represented by securities is usually much larger than the actual capital invested in joint-stock companies. The reason for this is that with the rise of capitalist production, the value of shares far exceeds their nominal price, which leads to large dividends and declining interest rates.

2. Share capital can act as real productive capital (objects and tools, production facilities, etc.), which operates in production. It is also reflected in the securities of the company, which are shares and bonds that have a special "title" and are paper duplicates of real capital. Through shares, bonds and other securities, their owners receive income that forms fictitious capital. The circulation of stocks and bonds occurs regardless of how the real capital of enterprises moves.

1. Joint-stock is the capital of a joint-stock company, which was formed by combining several individual capitals and attracting money from small investors by selling bonds and shares. Formally, share capital is impersonal capital, as it is the property of the entire joint stock company, not its individual members. With the help of a controlling stake, they can be managed by the biggest financial tycoons.

The actual owner of the share capital is a narrow circle of persons or financial institutions (commercial banks, insurance companies, etc.) that have a controlling stake. With its help the control of giant monopolies over considerable capitals of foreign companies is established. It is enough to buy less than 5% of the total number of issued shares. This is how General Motors established control over 40 subsidiaries.