Share
Definition
Share — a security with a fixed par value issued by a joint-stock company. Ownership of a share actually means that its holder has become a co-owner or shareholder of the company that issued the share.
Shareholder rights
- The right to own shares for an unlimited period;
- The right to sell shares or transfer them to trust;
- The right to own shares and valuable assets in any convenient form;
- The right to freely transport or transfer shares or valuable assets;
- The right to leave shares or valuable assets in inheritance, to transfer them to family members and any other persons.
Types of shares
There are two types of shares:
- Ordinary share — the holder has the right to vote at meetings of shareholders. The amount of income on such shares depends on the company's profit.
- Preference share — the amount of income on such shares does not depend on the profit of the issuing company. Holders of preference shares often have additional powers in the management of the issuing company.
In turn, preference shares are divided into the following types:
- Cumulative;
- Convertible;
- Constitutive;
- Non-cumulative;
- Inconvertible;
- Participatory.
IMPORTANT: Please be informed, that our services are available for Professional Clients only. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.