This article contains an analysis of the Iranian, German and Austrian law of shares as securities. Stocks are issued to the capital market with a view for them to circulate among market participants. Iranian legal scholarship has seen a debate on the nature of shares. Some classify them as property while other classifies them as obligations. The distinction is of interest because certain rules of law are said to apply to assets that are property, but not apply to obligations.
This paper will put forward the thesis that listed stocks in stock exchanges are born as obligations but continue as property with particulars of their own kind. They are asset invented by market participants. They are fungibles and have been created to circulate in liquid markets.
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