Preferred stocks

Preferred Stocks, securities and issued to instigate saving owners to be share holder of joint stock companies, concede some privileges in the management of corporation, share of profit etc.Considering their support to the national economy and content of saving owners, it is concluded that joint stock companies have the most important function between trading corporations. Legal arrangements in Turkish Commercial Code about preferred stocks are irrelevance in point of law despite the importance of this legal institution which fills the need of large capital. Because of the deficiency of legal arrangements and for reasons of importance of the legal institution and scope of application, legal loopholes about the preferred stocks are made disappear by doctrine and Supreme Court of Appeals. Even tough these efforts, legislator has to arrange this legal institution rigorously to prevent complexity in the scope of application. Considering the new legal arrangements in Turkish Commercial Code Draft, it is observed that the legislator is falling over oneself to dispose of these legal loopholes.In the thesis, short history of preferred stocks, concept of privilege and common stocks and protection of preferred stocks will be analyzed.Key Words1)Saving2)Joint Stock Company3)Capital4)Economics5)Privilege