What is a share?

What is a share?

A share represents your ownership in a company. As a part owner you are investing in the future growth of the company.
 

What are the types of shares?

Ordinary Shares (N)

• A right to vote at the company's Annual General Meeting.
• An entitlement to a share of dividends declared.
• If the company is liquidated, shareholders will be settled after all the creditors, depositors, debt holder dues has been settled.

Non-Voting Ordinary Shares (X)

These shares have the same characteristics of Ordinary shares except the right to vote at the company's Annual General Meeting.

Preference Shares (P)

• Most preference shares have a pre-determined dividend rate which you are entitled to receive.
• A claim on the company's earnings before payment to ordinary shareholders.
• Entitled to priority over ordinary shares if the company liquidates.

Warrants (W)

This is a certificate giving you the right to buy shares at a stipulated price at a future date.

(Sourse CSE)