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8/13/2019 Classes of Shares Of Stocks
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Stocks issues may vary
voting rights , preferences,
privileges, and restrictionsas may provided by the
articles of incorporation.
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COMMON STOCK
represents the basic issue
of shares and has all thebasic rights of a share.
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Common stocks feature:
VOTING RIGHTConceptual structure of
the corporation assumes thatthe share holders elect
directors who , in turn, hire
management to carry out their
directives.
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SHAREHOLDERS
Control the corporationthrough the right to elect the
directors.
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Directors are elected at an
annual shareholders meeting
by a vote of the holders of amajority of shares who are
present and entitled to vote.
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CUMULATIVE VOTING
A procedure in which a
shareholder may cast allvotes for one member of the
board of directors.
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STRAIGHT VOTING
A procedure in which a
shareholder may cast allvotes for eachmember of the
board of directors.
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PROXY VOTINGA grant of authority by a
shareholders allowing another
individual to vote his shares.
Voting in large public
corporations is actually doneby proxy.
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-Right to share proportionally in
dividends paid.
-Right to share proportionallyin assets remaining after liablities
have been paid in a liquidation.
-Right to vote on stockholders matterof great importance , such as
merger.
-Right to share proportionally in
any new stock sold , before offering
it to the general public , called pre
emptive right.
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PREFFERED STOCKClass of stock with
preferences over common
shares , including distributionof dividends and corporate
assets upon dissolution of thecorporation.
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STATED VALUE
It has a stated liquidating
value per share. The cash
dividends is describe in terms of
peso amount per share.Example:
ABC Corporation
10Preffered easily translatesinto a dividend yield to ten
percent of stated value .
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DIVIDENDS
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DIVIDENDSTypes given are either cumulative
or non cumulative. If preffereddividends are cumulative and are
not paid in a particular year, they
will be carried forward as anarreange. Usually,both the
accumulated (past)preffered
dividends and the current preffereddividends must be paid before the
common shareholders can
received payments.
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UNPAID PREFFERED
DIVIDENDS can be granted
voting rights , or to nominatepeople to represent their
interests on the board.
:
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:Class A- shares are for
Filipinos.Class B- are for foreigner
investor.
Founders shares areclassified as such in the
articles of incorporationandmaybe given certain rights
and privileges not enjoyed by
stockholders.
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PAR VALUE
Share capital of stock thathave been assigned a definite
or fixed value in the article ofincorporation so as to fix the
minimum subscription or
original issue price.
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NO PAR VALUEShares are those that not
have been assigned a definite
or fixed value .They mayassigned a stated value to
serve as the minimum issueprice.
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THANK
YOU FOR LISTENINGGODBLESS ;)
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