two types of shares

two types of shares

Action - this equity security that gives its owner (shareholder) as the right to receive dividends - in other words in the profits of the company, and the right to participate in the management of AD, as well as the share of the property remaining after the liquidation of the company . Action - registered security.

Investing its available shares in a particular company, and promoting the development of its business, the shareholder becomes a co-owner of the company. The market value of the company is largely determined by the price of the shares.
Raising capital is only at the time of issue (issue) shares in issue, a further increase in value of the shares does not result in the inflow of capital to the issuer - the person to issue securities in circulation. However, the price increase shareholder value is an important indicator of their investment appeal and increase the value of the company, which attracts investors.
two types of shares: preferred and common. In general, their main difference is that ordinary shares allows shareholders to vote at the meeting, but the dividends are paid can not, while the preference shareholders can participate in the voting only for a limited number of issues, but they are guaranteed to receive their dividends. Consider each of the types of actions in more detail.
two types of shares - preference shares
Dividends on shares of this type are paid consistently, but the right to vote at shareholders' meetings, they do not give. However, the preferred shareholders may participate in the meeting and entitled to vote on the issues:
to reform and liquidation;
all these meetings, written after the annual general meeting of shareholders at which it was decided to complete or partial payment of dividends on preferred stock, and this right is lost after the first full payment of dividends.
Joint Stock Company (JSC) has the right to place one or more of the shares of preferred varieties of type, their face value is limited to 25% of the share capital.

What are the rights holders of preferred shares:
the right to receive dividends or interest set to the nominal value of shares;
entitled to the property defined by the Charter of JSC in the case of reorganization or liquidation of the company (ie liquidation value).
Preferred shares of the same type have the same rights and the same par value. However, the charter of fixing the amount of the dividend and / or liquidation value of preferred stock of any kind.
Advantages of preferred shares to common:
Compared to the holders of ordinary shares, the holders of preference shares have more rights to receive a fixed dividend and liquidation value - which to a great extent and attract investors.
two types of shares - Ordinary shares
Dividends on shares of this type are not guaranteed and are paid out of the profit after interest payments to holders of preferred shares. But given the right to vote at the general meeting of shareholders (as opposed to preferred stock that does not give the right to vote, but to guarantee a stable dividend payment). Holders of ordinary shares are the true owners of the company bearing the responsibility for it and assume the greatest risk.
Ordinary shares similar indefinite loan, which is given to the company in exchange for a share of the profits. Charter company transfers all rights associated with the shares. One of the most important equity holder - the right to vote at meetings of shareholders, in the case of the company, appointment of directors, the approval of the proposed management company dividends, and other than that - to a proportionate share of the assets in the AO if it stops its activity.

Among the rights that are the holders of ordinary shares are:
the right to participate in the meeting, with the right to vote on all matters within the competence of the general meeting;
the dividends paid, mainly in case of company profits;
entitled to a portion of the property (liquidation value) to the situation liquidation.
However, the ordinary shares have identical nominal value and provide owners with an equal amount of rights.

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