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volume 4, issue 4, 2025
553
SPECIFIC ASPECTS OF THE ISSUANCE AND PLACEMENT OF SHARES
Kanaatov Anvar Shokirovich
Tutor of Samarkand Institute of Economics and Service
Toshtemirov Hayotjon Baxtiyorovich
Student of Samarkand Institute of Economics and Service
toshtemirovhayotjon906@gmail.com
Xoliyev Dilshodbek Farxod ugli
Student of Samarkand Institute of Economics and Service
Hikmatova Ruxshona Alisher qizi
Student of Samarkand Institute of Economics and Service
Annotation:
This article examines the legal and economic aspects of issuing and placing shares.
It discusses the process of share emission in joint-stock companies, types of shares, methods of
valuation, placement techniques, and practical issues encountered during the process.
International practices and their applicability in the context of Uzbekistan are also explored.
Keywords:
Shares, joint-stock company, emission, nominal value, placement, IPO, stock market,
investor rights.
A share is a security issued by a joint-stock company and giving its owner a share of ownership
in the company, the right to receive dividends, and participation in the management of the
company. Shareholders are the main participants in the formation of the company's capital.
Shares are divided into the following main types:
Common stock – the amount of dividends depends on the company's profits, and the
owners have voting rights.
Preferred stock – dividends are paid in a predetermined amount, but usually do not carry
voting rights.
A share is a security that confirms a share in the authorized capital of a joint-stock company and
gives its owner the right to receive dividends, participate in the management of the company, and
claim property. Shares are an important factor in the formation of the authorized capital of the
company, and through their issuance, the enterprise attracts additional financial resources. This,
in turn, ensures an increase in production volumes, technological innovations, product
diversification, and competitiveness.
Shares are classified based on the following criteria:
By rights: ordinary and preferred shares;
By market circulation: shares in free circulation and shares with restrictions;
By nominal value: shares with nominal value and shares without nominal value.
The shareholder, i.e. the owner of the company, is entitled to a certain share of the profits or
losses arising from the company's activities.
Issuance of shares is the process of issuing securities for the purpose of forming or increasing the
authorized capital of a joint-stock company. According to the current legislation of the Republic
of Uzbekistan, this process consists of the following stages:
Adoption of a decision on the issue. The decision on the issue of new shares is usually made by
the general meeting of shareholders or the supervisory board. The decision determines the
number, types, nominal value and terms of placement of shares to be issued.
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volume 4, issue 4, 2025
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Structure of the issue prospectus. The prospectus for the issue of shares provides detailed
information about the company, its financial condition, plans for the issuance and placement of
shares. This document is the main source of information for investors.
State registration. The issue prospectus and the decision are submitted to the Capital Market
Development Agency. Once permission is granted, the issuance of shares becomes legally
binding.
Placement of shares. Shares are placed in an open or closed form, at a predetermined price or
through an auction.
Announcement and accounting of results. Upon completion of the placement, the results are
announced and the register of shareholders is updated. Changes in the authorized capital are
reflected in accounting.
When shares are issued, the following entries are made in accounting:
On the authorized capital account:
Debit: Accounts receivable (shareholders)
Credit: Authorized capital
When shares are sold at market value (if there is a premium):
Debit: Accounts receivable
Credit: Authorized capital (nominal)
Credit: Additional capital (premium)
These entries ensure that the company's financial statements accurately reflect the size of the
investment and ownership structure.
In many developed countries (USA, Europe, Japan), the issuance of shares is strictly controlled
by stock exchanges and financial institutions. Complete information is provided to investors and
the level of transparency is high.
In Uzbekistan, the number of joint-stock companies is increasing, but the IPO practice is not yet
widespread. Since 2021, several companies have begun to operate on exchanges, but to increase
investor confidence, the following is necessary:
Independence and credibility of regulators;
Real protection of shareholder rights;
Warm investment climate.
Conclusions and recommendations.
The issuance and placement of shares play an important
role in developing the economy, attracting investment flows, and ensuring the financial
soundness of joint-stock companies. The legal and transparent conduct of this process increases
investor confidence. The following recommendations have been developed:
1.
Ensuring the openness of information about the issuance of shares;
2.
Strengthening legislation to protect investor rights;
3.
Improving the infrastructure of stock markets;
4.
Introducing approaches based on international standards in the valuation of shares;
5.
Activating the IPO market and creating a favorable environment for foreign investors.
References
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2. Barry Elliot, Jamie Elliot. Financial accounting and reporting. London, 2015. 17th
Edition.
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3. Harry I. Wolk, James L. Dodd, John J. Rozycki. Accounting Theory. 8th edition.
SAGE Publications.USA, 2013.
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