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Equity capital characteristics

characteristics (ordinary)
1. ownership
  1. stake in the company
  2. management
    1. directors
      1. executive
      2. non-executive
2. dividend
  1. variable share in company profits
  2. paid AFTER interest and pref divs
3. vote
  1. at company meetings
classes
1. ordinary
  1. 'A' shares
    1. NO voting rights
  2. founder shares
    1. issued to SUBSCRIBERS
  3. deferred shares
    1. often issued to founders
      1. pay a div once all other ordinary divs paid
      2. OR pay reduced div for X years before ranking equally
2. preference
  1. cumulative
    1. right to div ROLLED OVER if not paid
    2. ord divs not paid until ARREARS are paid
    3. ZERO DIVIDEND pref shares get voting rights
  2. participating
    1. additional divs paid if company is particularly profitable
  3. convertible
    1. to ordinary shares
  4. redeemable
    1. refund nominal value at redemption date
risks
American Depositary Receipts
1. DENOMINATED IN DOLLARS
2. Global Depositary Receipts
3. rights issue
  1. receive NIL PAID price
4. include voting rights and divs
characteristics: preference
1. NO voting rights
2. FIXED RATE dividend
  1. paid AFTER interest
  2. BEFORE ordinary divs
share capital
1. authorised
  1. maximum
2. issued
  1. allotted

Equity capital characteristics

	Created by Paul Dawson almost 11 years ago