Thursday, July 23, 2009

Ownership Securities

Ownership securities mainly include: (i) equity shares, (ii) preference shares, and (iii) no-par stock.

Ordinary Shares or Equity Shares
The equity shares may be regarded as the foundation of the financial structure of a company. They occupy a primary position. They represent the ownership capital of a company. The equity shareholders collectively own the company and enjoy all rewards and risks associated with such ownership. They do not have any preferential rights regarding either the payment of dividend or the repayment of capital at the time of company’s liquidation.

No comments:

Post a Comment