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Hello
Types of shares are many . However , We beleive that t the begining of the company , they will be less. Ordinary and Preferred shares.
Other type ususlly used at the subsequent years of business
Thanks for invitation,
In a very brief and precise wording there are lot if shares issued for the first time :
!- Ordinary Shares.
2- Deferred Ordinary Shares.
3- Non-Voting Ordinary Shares.
4- Redeemable Shares.
5- Preference Shares.
6- Cumulative Preference Shares.
7- Redeemable Preference Shares.
The different types of actions The two main types of shares are common shares and preferred shares. Ordinary shares Ordinary shares are, well, ordinary. When we talk about actions, we usually refer to these types of actions. In fact, the majority of shares issued are in this form. We examined the essential features of common shares in the last section. Ordinary shares are corporate titles of the company and are entitled to a portion of the profits (the dividends). Investors hold one vote per share to elect board members, who oversee major decisions made by management. In the long term, common stocks provide a higher return than most other instruments because of capital growth. This higher return has a cost, with the common shares carrying a higher risk. If the company goes bankrupt and is liquidated, the common shareholders will not receive any money until creditors, bondholders and preferred shareholders have been repaid. Preferred shares Preferred shares give some ownership over the business, but usually do not provide the same voting rights. (This varies by company.) Holders of preferred shares generally enjoy a guaranteed fixed perpetual dividend. This distinguishes them from holders of ordinary shares, whose dividends are variable and never guaranteed. Another advantage is that, in the event of a liquidation, holders of preferred shares are repaid before the common shareholders (but also after the debt holders). Preferred shares may also be redeemable; the company then has the option to redeem the securities to shareholders at any time and for any reason (usually for a premium). Some people believe that preferred shares are more debt than equity. A good way to settle this debate is to see them as intermediate instruments between bonds and ordinary shares. (If you do not know what the obligations are, check out our tutorial on this.) The different categories of actions Although common and preferred shares are the two main forms of shares, companies may, if they wish, define their own classes of shares. In most cases, such a measure aims to restrict the voting rights to a certain group; the different classes of shares then carry different voting rights. For example, a share class provides a certain group of shareholders with ten votes per share, while a second category issued by a majority of shareholders gives the right to one vote per share. When a security has more than one category, these categories are traditionally referred to as Class A and Class B. Berkshire Hathaway (Ticker: BRK), the business of Warren Buffett (one of the largest investors of all time), has two classes of shares. The different types of shares are indicated by a letter following the ticker symbol: "BRKa, BRKb" or "BRK.A, BRK.B".
When companies go public for the first time, a large issue will probably take the form of an initial public offer (IPO).
