Types Of Shares

Equity Shares :- These are also known as ordinary shares, and it comprises the bulk of the shares being issued by a particular company. Equity shares are transferable and traded actively by investors in stock markets. As an equity shareholder, you are not only entitled to voting rights on company issues, but also have the righ to receive dividends. However, the dividents issued form the profits of the company are not fixed. You must also note that equity shareholders are subject to the maximum risk owing to market volatility and other factors affecting stock markets as per their amount of investment.
Preference Shares :- These are among the next types of shares issued by a company. Preferential shareholders receive preference in receiving profits of a company as compared to ordinary shareholders. Also, in the event of liquidation of a particular company, the preferential shareholders are paid off before ordinary shareholders.

Published by Heeramb Parrit