Types of shares

[Nightmare]

A share could be defined as a unit of ownership of a business concern. It is usually expressed in terms of money capital . there are different types of shares.
1. Ordinary shares(common stock) : ordinary shares have no fixed rate of dividend. Ordinary share holders only receive dividend after the company must have met the claims of the preference share holders, debenture holders and other outside claims.
The ordinary shareholders exercise more control in the business than any other persons who have contributed capital. They have the right to vote at annual general meetings .
There could also be deferred ordinary share holders. They share the remaining products after all other share holders have been paid returns on their capital.
2.preference share: preference shares usually have afized rare of dividend. That is, oredernce share holders receive a fixed rate of retuns on their capital. They receive their share of the profits after all the running expenses have been met before anytyhg can be paid to the ordinary shareholders. In the case or business failure, the preference share holders recuve their capital before the ordinary shareholders. They bear rush then the ordinary share hikdea. They usually have little say in the management company.

 

[Learners Quest]

The types of popular shares include:

● Common shares: common shares are the type of share most people think about when they think about investing in a company. These types of shares provide a proportional say in the company’s direction.
● Preferred Shares: preferred shares offer fixed dividends to shareholders and they also allow you to benefit from certain aspects of a company before common shareholders, such as receiving dividend payments before common shareholders who have not been as "patient" do.

● Convertible Bond Shares: convertible bond shares are often purchased as part of high-yield bond funds, which are mutual funds that select highly rated bond issuers. Unlike regular bonds, the bond issuer can convert amounts from the bonds into equity in their company. If this happens, your shares will likely be worth more. The conversion potential is the main difference between preferred and convertible bonds, which makes them more attractive for investors who want to receive a fixed return on their investment but also benefit from the upside potential of equity ownership.

● Hybrid or Exchangeable: hybrid or exchangeable share companies offer both common and preferred stock to investors by combining stock and options.