COMMENTS LANGUAGE

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Phil Venkov

Thursday, August 2, 2007

Shares Definition

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What are the shares?

The shares are the percentage of stocks in one company owned by a person. The share either have limited voting rights or no voting right at all. They participate in the company earnings or, the bigger the earnings of the company are , the bigger the price of the shares is.
Basically there are two main types of shares :

  • Ordinary shares - The ordinary share is the smallest unit in the company's ownership percentage. The ordinary shares can also be a risk to the company's business

  • Preference shares - are the pay back over times of the retained profits. They are income-fixed and you have the right to receive dividends before the ordinary shareholder, but only after loan stock holders have first received their parts
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