Types of shares

Types of shares

  • Ordinary shares; are shares  which  do not carry  a  fixed  rate  of  return  (dividend).  These shares  receive  only dividends  after  all preference shares  have  paid
  • Cumulative preference shares; are  shares  which  are  entitled   to dividends   irrespective    of whether  the company  has made  profits  of incurred  losses  in a given  period
  • Preference shares; are shares that carry a fixed rate   of return (dividend).   However,   if no  profits  are made in the given period,  no dividends   are paid
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