Question

Ordinary shares and Preference shares

07 Mar 2018
Answer :
Word Count : 434

An ordinary share defines a single unit of equity ownership of a corporation, where the holders of the ordinary shares receive the right to cast a vote in decisions involving important corporate matters. Such votes are available to each ordinary shareholder in correspondence to the number of ordinary shares held within the company. Ordinary shareholders are the last to receive dividends, and are only entitled to funds which remain after dividends on preferred shares are paid. Ordinary share holders may not receive dividend payments every year, and payments to ordinary shareholders depend on reinvestment decisions made by the company directors. In an event of the company facing liquidation, the ordinary shareholders will be the last to receive their share of funds, after the creditors and preference shareholders are paid. As such ordinary shares are riskier than bonds or preference shares. Ordinary shares are also referred to as ‘common stock’.

A preference share contains features of equity and debt as the dividend payments to preference shareholders are fixed. The types of preference shares include cumulative

_____ ___ __________ ___ ____ ______ _______.
___ ________ __________ _________ __________ _________ ______ ______ ___ ____.
__________ _____ ______ ____ __________ ________ ___ _____ __________.
___ _____ ____ ___ ___.
____ ____ __________ __________ _______ ___ _______ _____ ____ __________ ____ __________.
______ ___ __________ _____ _____ ____ ______ ____ _______ ___.
__________ ______ ________ ____ ______ ______ __________ ____.
______ ______ _________ ___ _______ ___ _________.
________ ______ _________ ____ _________ __________ _____.
_____ ____ ____ __________ __________ _________ ___ ________ _____.
_________ __________ ______ ____ _____ _____ _________ ______ ________ __________.
___ _________ ____ __________ _______ ________ ______ _________ __________.
________ _______ _____ _______ ________ __________ ______ ____ ____ _________ ________.
________ ____ ____ ____ __________ _____ __________ __________ __________ ________.
______ ____ _____ __________ _________ ____.
_____ ___ _______ ________ ________ __________ _________ __________ ____.
_______ _________ __________ _____ __________ __________ _____.
__________ ________ _________ ______ _________ ________ ____ __________ ____ _________ ______.
_____ __________ _______ _______ __________ _________ ___ ______ __________ __________.
________ _______ _________ _________ ______ ____.
____ ________ _________ ________ ____ _________ ______ __________ __________ _________ ___.
______ ____ _________ ______ _____ ____ _____ ___.
______ __________ ______ _____ ______ ________ ________ ________ __________.
____ _________ _____ __________ ______.
_____ _____ ____ _______ ____ _______ ___ ______ __________ _________ ____.
___ _______ _____ _________ __________.
______ ____ ___ ___ ___ _________ ________ _____ ___.
__________ ____ _____ _________ __________ _____ _____ _________ ________ ________ ____.
__________ _____ _________ ____ ________.
________ ___ ___ ___ __________ ____ __________ _____.
_________ ________ _______ __________ ____.
IGNOU ACADEMY
Your IGNOU journey, made easier.
  • Solved Assignments
  • Study Notes
  • Guess Papers
  • Question Papers
Skip in 10
Top
📞
Call Support Instant phone assistance IGNOU TS 3 2017 2018 - Ordinary shares and Preference shares | IGNOU Academy
→
🟢
WhatsApp Chat Fast live messaging
→
Email Us Business enquiries & support
→