cryptohunter
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In the business game in the UK, companies can be creative with the types of shares they offer. Ordinary shares are like the foundation of ownership—they let you vote in company decisions and grab a piece of the profits through dividends..
Their are preference shares. These give shareholders some special treatment. They get fixed dividends before ordinary shareholders, and if things go south and the company has to close shop, preference shareholders get dibs on the company's wealth. They might not get full voting rights, but the perks in income and getting a piece of the assets make them a good choice for folks who want a safer spot in the company.
Companies can mix things up even more with shares that can be bought back (redeemable shares) or changed into a different type (convertible shares). Having different types of shares lets companies build smart money structures that attract different kinds of investors and help them reach their goals.
Their are preference shares. These give shareholders some special treatment. They get fixed dividends before ordinary shareholders, and if things go south and the company has to close shop, preference shareholders get dibs on the company's wealth. They might not get full voting rights, but the perks in income and getting a piece of the assets make them a good choice for folks who want a safer spot in the company.
Companies can mix things up even more with shares that can be bought back (redeemable shares) or changed into a different type (convertible shares). Having different types of shares lets companies build smart money structures that attract different kinds of investors and help them reach their goals.
