1. Listed stocks are the ones with the most open tradability.
The liquidation of unlisted marketable shares is generally more difficult, if not very difficult. In enterprises that are not really in business, the majority co-owner and head of the enterprise uses statutory limitations on the transferability of enterprise shares, as well as blank powers, so that the enterprise remains, in fact, in its own name. This disguise has as its counterpart the restitutable joint-stock enterprises whose managers have put on hold the method of liquidation specific to this kind of capital.
2. Advertising the exploited value per share reinforces the link between this value and the share price.
Currently, the number of shares is shown in the published quotes. On the other hand, neither the amount of the capital exploited nor the division of this amount by the number of shares is included. The market authorities are not yet doing anything to ensure that the exploited value per share becomes the level, variable over time, around which the price of a listed share oscillates.
3. Let us assume that this value and the rate of profit distributed in relation to this value are published in force.
So the comparisons to which each of these ads lends itself reinforce two trends. The differences in the rates of profit on capital worked are narrowing more quickly. The prices of tradable shares oscillate more closely around the corresponding exploited values.
4. The market capitalization of an enterprise is equal to the product of its share price by the number of its shares.
In the lexicons that are now provided on sites dedicated to the stock market, we find the term "shareholder value" as "value creation by the enterprise" or "creation of value for the shareholder". Often, this "value creation for" refers more to the capital gain than to the income from the equity investment. This "value creation" never refers only to dividends.
5. The purpose of negotiable shares is the same as that of returnable shares: the permanent financing of a corporate business.
Tradable stocks are not for gambling, although they can be used to engage in it. An investment in equities has the rate of return on what it pays in dividends. The distinction between capital gain and rate of return is all the more important since the capital gain is only received when the securities that provide it are liquidated, whereas dividends are only received while the securities are held.
6. Let us repeat that surplus values are transfers and not value creations.
There is the creation of economic exchange value only through the remunerated supply of an elementary commodity (Chapter 2 At the same rate of profit distributed on the value of the business, the returnable and negotiable shares contribute equally to this creation. A surplus value, the result of an excess of offers to buy over offers to sell, displaces purchasing power without being in itself a creator of it. This makes it a transfer72.
7. The stock option process is not used in the full-trade economy.
This process amounts to saying who this form of profit-sharing is aimed at: "I employ you so that your work contributes to creating value for the shareholder. In practice, this means: to give current and potential shareholders the feeling that the surplus value in constant monetary units is, on our shares, a tree whose growth will be endless." In the economy of full trade, this statement becomes: "If you want to become a co-owner, it is under the same conditions as anyone else, whether or not anyone is an employee of the enterprise".
8. The separation of economic roles is cleaning up the markets.
But, like the political separation of powers, it is applied by prohibitions. The requirement for banks to be either retail or investment is one of the separations that provide for the consolidation of the market economy.
9. Financial techniques other than stock options are not used in the full-trade economy.
Debt securitization and interest rate derivatives are ways of multiplying the number of transactions likely to generate surplus values while minimising the capitalisation rate. The prohibition of these techniques is one of the characteristics of an economy in which exposure to capital losses and the possibilities of surplus values are reduced to what is necessary for two purposes. Rising capitalization rates increase resistance to insolvency outbreaks. This same increase contributes mainly to the establishment or restoration of full employment (see the chapter on employment below).
10. Which shares, returnable or negotiable, are the most favorable to deconcentration, disintermediation and the rate of return of equity investments?
Deconcentration: more savers have become and remain shareholders. Disintermediation: the share of quasi-capital in the financing of enterprises, including financial institutions, is declining.
Process of realizing return: placements of savings in capital becomes a source of annuities that can be passed on from one generation to the next after payment of inheritance tax.
11. Only negotiable shares can be used to transfer shares in the co-ownership of an enterprise.
The returnable shares of an enterprise make it possible to transfer, with the agreement of this enterprise, the status of member and the rights attached to it. But the receipt of an unlimited series of periodic profits, constituting an annuity, is one of these rights in all cases of investment in capital.
12. Two advances make the question of the respective virtues and complementarity of returnable and negotiable shares relevant.
One is the less biased organization of the equity investment market. The other is the acquisition of the status of annuitant in addition to or in replacement of a pay-as-you-go pension, i.e. by transferring today's contributors to today's pensioners. Under these conditions, how would an economic policy that misses the possibility of this progress be sufficiently relevant?