Good To Know: Roadmap For Different Types Of Shares

Stock market news-lexicon explains financial terms to act effectively in the financial market, it is important that certain terms and their meaning to know. Boy Scouts is a great source of information. To provide a little assistance here, the economic lexicon by offers comprehensive information and explanation around the topic of stock exchange and finance. Today, it presents the different types of shares. On the stock exchange is traded, including commodities and currencies. “However, most people think of shares, if the word Exchange” falls.

A common term, it seems. But they can also define the term and you know the different forms of shares? creates clarity. The owner of a stock receives ownership of the respective joint-stock company, making him the co-owner of the company in its acquisition. This arise rights such as proportion of the balance sheet profit, participation in the general meeting, the right to information, as well as the subscription right to new shares for him. Unappropriated net profit, creates the share owner receives its Share in the form of dividends. The amount is set at the annual general meeting.

Now, there are different types of shares. Firstly, a distinction is made between ordinary and preference shares. Owners of ordinary shares have one vote at the annual general meeting, which is not the case with preferred shares. This is compensated mostly by a higher dividend. Other forms of shares are bearer shares and registered shares. Owners of bearer shares will receive their rights through mere ownership of shares. For registered shares, by contrast, the owner must register only his name, his address and the exact number of pieces in the share register, to exercise its rights to. More information from the stock exchange encyclopedia: encyclopedia