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Common Stock/ Ordinary Shares
It is a financial security that gives its holder a partial ownership of a company, depending on the percentage he owns. For example, if an investor buys 1000 shares in a company that has issued one million shares, thus the investor owns 0.1% of that company.
There are 2 types of stocks; common stocks and preferred stocks. Ordinary or common shareholders have the right to share in the profits of the company only after preferred shareholders have been paid their dividends. In case of the company’s bankruptcy, its ordinary shareholders will receive a payout only after all other creditors, bondholders and preferred shareholders have been paid.
Preferred or Preference Share
It is an equity that gives its owner additional rights compared to the common/ordinary shareholders. The Company’s by-law may stipulate some of privileges to specific shares i.e. voting or profits or liquidation, provided that shares of the same type should enjoy the same rights, privileges and restrictions, however, combining both voting rights and liquidation proceeds privileges is not permitted. Furthermore, rights and privileges or restrictions related to one type of shares cannot be amended unless a decision was taken by the Extraordinary General Assembly given the approval of two-thirds of the related shareholders, in addition to amending the company’s by-law.
For more information about all listed shares, please click here.
For more information about all traded shares, please click here.
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