Скачать или смотреть Ordinary Shares vs Preference Shares Explained | Dividends, Voting Rights & Key Differences

📌 In today’s video, we break down Ordinary Shares vs Preference Shares — two of the most important types of shares a company can issue 📊. Whether you’re an investor, entrepreneur, or student of finance, understanding these shares is crucial for making smart decisions in the corporate world.

📅 Video Chapters:

⏱ 0:00 – Intro to Ordinary Shares and Preference Shares Explained
⏱ 1:05 – Ordinary Shares Explained
⏱ 5:05 – Preference Shares Explained
⏱ 8:37 – Ordinary Shares vs Preference Shares

💡 Ordinary Shares Explained:

Ordinary shares (also known as common shares) represent partial ownership of a company. Holders of ordinary shares usually enjoy:
✔️ Voting rights in shareholder meetings 🗳️
✔️ Potential dividends (not guaranteed) 💰
✔️ Rights to residual profits after preference shareholders and creditors

Dividends for ordinary shareholders depend on board of directors’ decisions, and profits may be reinvested instead. In case of liquidation, ordinary shareholders are last in line to receive any remaining value.

🎯 Risk vs Reward:

While ordinary shares carry higher risk, they can yield greater rewards during good financial periods — including extra profits during company growth or acquisitions.

📘 Preference Shares Explained:

Preference shares (or preferred shares) give holders priority over ordinary shareholders in dividend payments and during liquidation. Key points:
✔️ Fixed dividend rates 💵
✔️ No or limited voting rights 🚫🗳️
✔️ Priority in receiving dividends and liquidation proceeds

📌 Types of Preference Shares:

1️⃣ Cumulative – Unpaid dividends accumulate
2️⃣ Non-Cumulative – No carry-over of unpaid dividends
3️⃣ Participating – May share in extra profits
4️⃣ Convertible – Can convert into ordinary shares

⚖️ Ordinary Shares vs Preference Shares

Voting Rights:
🗳️ Ordinary shares → Usually have voting rights
🚫 Preference shares → Usually no voting rights

Dividend Priority:

💰 Preference shares → Paid first, fixed rate
📈 Ordinary shares → Paid last, variable rate based on performance

Risk Level:

🔒 Preference shares → More stable, predictable income
⚡ Ordinary shares → Higher potential return, higher risk

Growth Potential:

📉 Preference shares → Limited by fixed dividends
📈 Ordinary shares → Potential for bigger payouts during growth

🎯 Investor Takeaways:

💡 Preference shares are ideal for those seeking stable, predictable income with lower risk.
💡 Ordinary shares suit investors willing to take higher risks for potentially greater returns and voting rights in company decisions.

Whether you’re considering share purchases, equity financing, or simply learning corporate finance, understanding these two share types will help you make informed investment and governance decisions.

✅ If you found this video helpful:
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💬 Share your thoughts in the comments — which would you choose: Ordinary or Preference shares?
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📚 Related Videos on This Channel:

What is a Shareholder? 📄
Shareholders Agreements Explained 🤝
Company Constitution and Corporate Governance 📜

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