Toroinvest shares key knowledge about shares
Toroinvest provides you the opportunity to trade shares of a broad portfolio of companies through Contracts for Difference (CFDs).
What are the basic types of shares?
There are preference shares and common shares.
The preferential shares
They have an advantage in the company’s liquidation because their holders will be paid out with preference after all debts of the company are settled. The preferential shares differentiate by type of dividend payment, structure, maturity terms and do not have the right to vote.
The common shares
These are equity shares and are also called ordinary shares. The common shares are the type that is most often traded on the stock market. Their holders have the right to vote and to be paid out dividends.
Cumulative Preference Shares
This type of share guarantees a fixed rate of a dividend. Cumulative preference shares payout the arrear in subsequent years, and their holders are not losing anything in case the profit of the company is negative.
Non cumulative Preference Shares
As the name suggests, this type of share does not accumulate over the years. The non cumulative preference shares guarantee a fixed rate of dividend, and their holders do not receive dividends when the profits are inadequate.
Participating Preference Shares
They guarantee a fixed rate of dividend and share the surplus profit.
Non participating Preference Shares
They guarantee a fixed dividend rate, but they do not share the surplus profit in contrast to the participating type.
Convertible Preference Shares
They can turn into equity shares for a fixed period.
Non-convertible Preference Shares
Yes, you guessed it. This type of shares cannot be converted to equity shares.
Redeemable Preference Shares
They could be repaid after a previously fixed period or, in some cases, even earlier.
Irredeemable Preference Shares
They do not carry an arrangement for redemption and are paid out only at winding up.
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