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- Ordinary shares - Ordinary shares generally carry the right
to a vote. Where a company is wound up they
generally have a right to participate in any
surplus funds beyond the fixed amount which
they originally invested in their shares.
- Preference shares - Preference shares carry preferential rights,
most commonly as to dividend or capital. A
share which is preferred as to dividend usually
entitles the member to be paid his
dividend in priority to the ordinary shareholders.
Preference shareholders' entitlements to dividends
are generally expressed as a right to a percentage
per annum of the nominal amount of the share.
- Redeemable shares - Redeemable shares are shares which the company
is entitled to redeem from
its members. Where shares are redeemed the
company generally cancels them. However, a
treasury share is a share which is retained
on redemption by the company and can subsequently
be re-issued.
- Bonus shares - Bonus shares are shares issued to the shareholders in proportion
to their existing shareholdings. These shares are issued as having been
fully paid up so the shareholders are not required to pay for
them. They are usually paid from accumulated profits that have
been transferred to capital.
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