The harm of domestic sewage

(Crack method 3) Trial preferred stock issuance

The experience of market economy countries shows that the issuance of preferred shares to absorb domestic and foreign private capital for urban sewage treatment can meet the huge capital needs of sewage treatment without losing the government's control over sewage treatment projects. Preferred stock is relative to common stock. Other advantages of investing in common stocks include a higher return on investment than other similar securities, greater liquidity in the stock market, and fair trading.

Preferred stock is a stock with certain priority over ordinary stock, mainly the right to preferentially share dividends and residual property of the company. The biggest advantage of preferred stock is that it has stable returns and less risk than common stock. However, when the joint stock company has outstanding operating performance and operating profits surge, the income enjoyed by preferred stock will not increase, while the income of common stock can increase with the improvement of the company's operating efficiency. From this point of view, preferred stock is less developmental and aggressive than common stock.

According to the current practice in China, stocks are divided into state shares, legal person shares, individual shares and foreign shares according to the different identity of investors, and there is no division of preferred shares and ordinary shares. There is no concept of preferred stock in the Company Law of our country, and there is no corresponding regulation. This is because China's joint-stock enterprises are from the planned economic system of the enterprise transformation, so with a variety of historical traces, become a historical problem to be further explored and solved in the reform. Starting from the reality of urban sewage treatment, we can explore the issue of sewage treatment stocks. This requires joint-stock transformation of existing sewage treatment enterprises, issuance of some preferred shares to domestic and foreign private capital, or transfer of some state-owned shares to private capital in the form of preferred shares, and the funds raised by sewage treatment enterprises for sewage treatment. This way is based on the development performance of the existing enterprise, and the performance of the transformed enterprise continues to grow, so the possibility of fundraising success is greater.