TYPES OF SHARES 👇 Ordinary Shares 👇 Ordinary shares are also known as equities. The ordinary shareholders are the real owners of the business. The holders are the risk bearers and they receive their dividends after all other shares have been paid. They can vote and voted for. They have no fixed rate of dividend. NB: Equities~ Ownership/ Value. It’s Features 👇👇 • There is no fixed rate of dividend. • They have voting rights. • The holders are the real owners of the business. • They are the risks bearers. • They receive dividends last, after others have been paid. Division ⁠of Ordinary Shares 👇 a. Deffered or Founders Shares 👇 • Are shares given to a company’s founders and promoters as a reward for their services in establishing the company. • ⁠it is issued after all other shares have been paid. • ⁠it is the remainder or surplus of shares after sharing shares. • ⁠Last to received dividend. It’s Features. 👇 • Delayed dividend and capital • ⁠have more voting rights • ⁠it is issued to the founders of the business • ⁠holders are entitled to the remainder of dividend. • ⁠Serve as a compensation to the founders. b. Preference Ordinary Shares 👇 • Are the second holders to received dividend after the preference shares have been paid. • ⁠they have preference over founders shares. NB: preference~ favored or to be given priority Preference Shares 👇 • they are outside investors who invest or add an additional capital. • ⁠they received dividend first before Ordinary shareholders. • ⁠it is issued to raise more capital to finance operations. It’s Features. 👇 • have no voting rights • ⁠fixed rate of interest • ⁠received dividend first • ⁠entitled to return of capital first at winding up.