Types of stocks and their characteristics in the market

Types of shares and their characteristics in the market, a company may own different types of shares with different terms and rights such as vesting of capital after business termination and voting rights within the company.

What are the types of stocks?

  • Sold common stock
    They are the most common type of stock and they are standard stocks without rights that provide the most economic benefit but also the highest risk. Ordinary shareholders have the voting rights, but they are the last to be paid when the company ends.
    Most of the stocks traded on ASX are common stocks.
    Ordinary shares have no special or preferential rights.
    Ordinary shareholders generally have the right to vote at the general meeting of the company and to participate in any dividend or any distribution of assets in the same manner as other common shareholders in the event of a company liquidation.
    Non-voting common stock has the same terms as common stock, except in respect of voting rights, shareholders may or may not have voting rights under certain circumstances.
  • preferred stock
    Preferred shares generally have the right to give their holder preferential treatment when paying annual dividends to shareholders. These shares receive a fixed dividend, which means that shareholders do not benefit from increased operating profits, but are usually entitled to dividends to shareholders. . If the company is in trouble in general.
    Preferred shares have no voting rights.
    Preferred stock usually gives its holder priority or “prime” over common stockholders when paying a dividend or winding up the company.
  • differential stock
    Different types of differential stock have different rights and characteristics. Usually, the voting rights of differential stock holders are limited to specific circumstances or decisions, but this depends on the terms of the stock.
    differential stock
    Cumulative preference shares give the holder the right to carry forward dividends for one year if he does not pay a dividend.
    Accumulated preferred stock dividends must be paid as long as the company has dividends to distribute, regardless of the company’s dividend level.
  • Paid Stock
    Issuance of Partially Paid Shares (also known as Contributory Shares) does not require the Company to require full payment of the issue price on a specified future date or date,
    The company has the right to recover all or part of the price of this issue, and the shareholders are obligated to redeem according to the law when it becomes due.
    (The responsible company does not need to specify the date or date of the call,
    Upon vesting, shareholders can either pay redemption rights or lose their shares.

How are paid shares determined?
Partially paid shares traded on ASX are usually identified with a five-character code
It consists of the company code and a two-letter suffix, usually CA-CZ (except for CP).

In general, holders of partially paid shares have the same rights as ordinary shareholders to vote, dividends, and liquidate the company, but these rights are proportional to the amount paid for shares (through the issuer, holders of partially paid shares have voting rights, as any ordinary shareholder).

Identify different types of stocks

  1. Every product traded on ASX has a unique identifier.
  2. These symbols are displayed on the ASX Index panel and are included with the company’s name.
  3. In the media market tables, all securities issued by the company will include the company symbol.

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