General

ideas..3
Romania

vs.

G.B.

.4
Build

&

Sell

houses

corporation...................
....6
Conclusion
..
7Bibliography
8

General ideas
From time to time, on the world map, some guy has a bright new idea. We are going
to call this guy Bob. His idea could become very easily a new business. Whether Bobs idea
is a good one or not, or whether Bob knows how to implement his idea at full potential or not,
it makes the difference between success or loss for his business.
When people want to set up or start a company, they are gonna need money to do so,
which is called capital. If Bob does not hold enough money to make his idea become reality
he has another choice. He can borrow money from a bank, which is called a loan, and
afterwards Bob will have to pay back the loan with interest or we can take money from friend
and give them back or give them back as shares.
Later, if his company grows bigger and Bob wants to raise capital, he can sell shares.
A share is one of equal fractional parts of a company. Shares are usually classed as ordinary
shares and preference shares. Preference shares owners receive a fixed dividend (a certain
amount of the shares nominal value), which is paid before ordinary shares holders receive a
dividend.
A company can issue new shares and offer them first to actual shareholders, which is
known as rights issue. Companies can also capitalize some of their profits by issuing new
shares to existing shareholders instead of paying them a dividend, which is called
capitalization issue. If the company happens to have a big amount of money lying around
can use this cash to buy back some of its shares traded on the market, which are known as
own shares.
When you want to start your own business you do it as a Ltd (Private Limited
Company), just as Bob did. Because his company is still fresh, it is not issuing shares and

obviously it is not quoted (listed) on a Stock Exchange, this Ltd company can issue share
only to friends or people you know , because these are not listed on Stock Exchange.
Lets say that his newborn business has an initial success because it offers to its clients
a revolutionary product, something that everybody could use, at a very low price, this means
the company will have minimum profit but it will have a big capital this will be good , for the
future.
If your company is a profitable one, you can decide to go public. By going public we
understand that a Private Limited Company (Ltd) changes into a Public Limited Company
(PLC) by applying for listing on the Stock Exchange and selling shares to outside investors
for the first time. Offering shares for the first time is called flotation or IPO (Initial Public
Offering). This thing can help you earn money easily if you are trustable company , even if
your are new on the mrket , the investors will study your past years and will decide if he buy
shares.
Selling newly issued shares for the first time to different investors is called Primary Market.
After the shares have been sold on the Primary Market, they can be repeatedly traded from
investor to investor on the Secondary Market.
The difference is that the PLC(Public limited companies) can quote the shares in a stock
exchange whereas The difference is that the PLC can quote the shares in a stock exchange
whereas the Ltd Companies cannot. Ltd companies thinks more of profit from the business
whereas the Public Limited Company cares less of profit as it is concerned with services
and goods for the public,because if somethig go wrong if the PLC company, the public will
have a negative impact. The biggest differrence between a Public limited and private limited
is that just the public limited company can can quote the shares in a stock exchange whereas
the Ltd Company cannot.
The shares in a PLC can be sold through the stock exchange and you do not need to consult
the owners for selling and buying shares. But, Ltd companies can have shares too , but they
are normally sold to close friends and others and that can only be done if all the shareholders
agree. The ownerships of a public limited company are divided up into equal parts called
shares, how has more then 50% of the shares is the manager of the company and also he can
have less the 50% but here all the shareholders will decide which will be the manager.
cannot. Ltd companies thinks more of profit from the business whereas the Public Limited
Company cares less of profit as it is concerned with services and goods for the public,because
if somethig go wrong if the PLC company the public will have a negative impact. The

biggest differrence between a Public limited and private limited is that just the public limited
company can can quote the shares in a stock exchange whereas the Ltd Company cannot.
The shares in a PLC can be sold through the stock exchange and you do not need to
consult the owners for selling and buying shares. But, Ltd companies can have shares too , but
they are normally sold to close friends and others and that can only be done if all the
shareholders agree. The ownerships of a Public Limited Company are divided up into equal
parts called shares, how has more then 50% of the shares is the manager of the company and
also he can have less the 50% but here all the shareholders will decide which will be the
manager.
The risks as an owner of some shares in a corporation or in a private limited company are
very high , from my point of view i consider that big corporations like Google are safer than
corporations that didn t a high statut or rank like Google , for example buying some shares at
google is not such a bad ideea ,because you can earn money very easy if you have a lot of
money to invest and also a briliant mind. You can take a risk buying over 50% of the shares of
a company that from 3 mounth has no profit,but this thing can lead you to a business of succes
or to a falimentary business which is not good. As a businessman you should take risks if you
think your way out to succes is that company with no future in the present you must buy it and
manage it carefully in order to made it a profitable business of company. Most of the
companies which are public limited companies ,they try to be profitable , because this will be
an advantage for them and olso an advantage for the public , if the public will earn money , it
means that that company is profitable and if the company is profitable , the shares will
increase.

Romania vs Great Britain

This project will contain a big source of information about private and public limited
companies doing a comparison between Romania and Great Britain. In order to begin with
something more general, I would like to write all the advantages and all the disadvantages that
a Ltd (Private limited company) has and a PLC (Public limited company) has. The
advantages that a Ltd has its that you need only a minimum share capital of 200 lei in
Romania ,but in other country like Great Britain the amount will be 100 . From my point of
view a public limited company has only disadvantages if you are at the begging and you want
to start a business , because you need to have a minimum share capital of 90.000 lei and in
Great Britain you must have 50.000 .There are big differences between Romania and Great

Britain and these differences you could see them in that minimum share capital. Usually the
small companies are Ltd companies ,because Ltd requires at least an unique associat, not at
least two people with shares,called in Romanian actionari ,like PLC requires. The
difference is that the PLC can quote the shares in a stock exchange whereas the Ltd Company
cannot. Ltd companies thinks more of profit from the business whereas the Public Limited
Company cares less of profit as it is concerned with services and goods for the public,because
if somethig go wrong if the PLC company the public will have a negative impact. The biggest
differrence between a Public limited and private limited is that just the public limited
company can can quote the shares in a stock exchange whereas the Ltd Company cannot.
We have 2 companies in 2014 at the section oil production: OMV PETROM S.A and
S.N.G.N. ROMGAZ S.A. and in Great Britain two companies which dilevers oil are Royal
duch shell and Independent Oil & Gas Plc Ord .
OMV PETROM S.A has 56,644,108,335 Issued Shares, 5,664,410,833.50 RON Share
Capital and the Share Nominal Value is 0.1 RON and S.N.G.N. ROMGAZ S.A has
385.422.400 Issued shares , 385.422.400,00 Share capital and the Share Nominal Value
is 1 ron.
In Great Britain we have the two companies: Royal dutch shellShare in issue: 2,440.41m,
Share nominal value 2,282.; Independent Oil & Gas Plc Ord Share in issue 65.16m ,
Share nominal value 16

Build & Sell houses corporation

A Limited company can have shares if the all the shareholder are agree with this. Ltd
companies in the past where more profitable and some of them had the courage to make
shares in order to sell them, but now in this days of crisis everyone wants to reduce their
expenses in orther to maximize their profit. The shares were very popular in the 2006-20072008-2009 and everyone wanted to have at least one share at diferent companies that they
didn t know , but people heard that it was a good investition.
From my point of view this was a big fail for those how bought and didn t sell them
imediately at higher price because those how had shares and they didn t want to sell them
because they wanted to earn more money they seemed to be the losers. Ive made them
losers , because they bought a share with let s say 4 euro, he had the occasion to sell it with 8

euro but he wanted more , because this the tipical mentalitay ,and the prices go down
imediatly after 2008 the share decreased at let s say 3 euro, if i had 1000 share of 4 euro each
and didn t sell this thing was a big fail , because i ve stocked my money for 3-4 years in some
shares and ive lost 1000 euros.
In our days people prefer to keep their money in the pockets or at the bank ,they are afraid to
make bad decisions ,because this will affect their families. The crisis is not good for the
bussines men, because there are a lot of companies in competition and most of the companies
tries to have minimum profit in order to atract more people.
Now i will talk you more about my corporation which was not a corporation from the begging
, as an usual persona i ve stared with a public limited company in 1996 after 10 years just
when i saw that the shares become more popular i decided to change the title of the firm and
made it a public limited company. Sayd and done , my corporation was ready and the first
shares where on the primary market, this thing is called IPO(Iniatial Public Offerning).
After 2007 my bussines was a succesful bussines we have build mare than 10000 flats and
3000 houses and we had a huge profit because we were very serios and our house and flat
very expenses but cheap...this means that a house was like 200.000 euros but it was cheaper
that our competition on the market so we sell a lot.
In 2008 the prices blow up again, this thing was good but not for us, because the lands where
more expesive if a land was 20.000 euros now it was like 40.000 euros. I was thinking that if
this is just the highest point of the inflation or it s just a reality , so i ve decided to sell all the
house that i ve made , all my share that wereon the market were very expensive beacause our
profit was very big, i ve talk with many people and the advice me to take it easy beacause this
is just a moment when house are sold. So i build houses and flats iven in 2009 when the prices
where like the same as in 2008 , i had a lot of flats and another 10 houses that were not
bought, so i ve decided to anounce all my shareholders that i will not build houses till i get my
money back from my investition.
In 2010 all the flats were sold,so i ve decided to reopen my building company. Finally in 2010
i ve made another 500 house and 2000 flats. So from my point of view money are made to be
in circulation. The firm was a big succes from my point of view but this inflation was going
to continue in a wrong way , but till 2012 all my house and flats were sold , so i ve decided to
take it easy with the building , because it was the time for crisis. Now people in this time of
crisis do not think about buying houses , most of them think about their next day or how they
can make their family happier. The risks as an owner of an PLC companny which has issed a

lot of the share is that for the first the shares will not be wanted like other shares from other
companies.
A company like one of mine it was a big succes after 10 years of work when i ve decided to
turn my firm into a public limited company. In 2013 my company was not such a wanted
company because as i said people wanted to secure their next day. I ve build another 10
houses and 100 flats and till 2014 in this moment i didn t sell of them , because everyone
wants cheap houses or cheap flats, with good material and in a good place of the town.

Conclusions
In conclusion I think that my bussines was a great succes in the first 13 years then when the
inflation come and all the prices go crazy the people start to think that the transaction with the
land and with the houses will be the future so they started to buy houses , so here was my
company how build a lot houses and flats , most of the people buy houses and flats on a
rezonable price and then they wanted to sell them on a bigger price to make profit , so they
think this bussins it a big success. They bought house for 200000 euros near centre and they
sold them in the top of the inflation with 500000 euros so it s a profit of 300000 euros without
doing anything after paying the taxes he will remanin with aproximately 250.000 euros
profit , which was very good for those bussinessmen which where having money at that
moment to invest and also the inteligence to sell the building at the right moment to increase
the profit.

Bibliography
http://www.bvb.ro
http://www.formacompany.com/en/uk/public-limited-company
http://www.theaccountancy.co.uk/articles/information/the-difference-between-private-andpublic-limited-companies-1049.html
http://www.lse.co.uk/