Know more about Stock Market Instruments

What is a share?

• A share represents your ownership in a company. As a part owner you are investing in the future growth of the company.

 

What are the types of shares?

Ordinary Shares (N) offer

• A right to vote at the company's AGM.
• An entitlement to a share of dividends declared.
• If the company is liquidated, shareholders will be settled after all the creditors, depositors, debt holder dues has been settled.

Non-Voting Ordinary Shares (X)

• These shares have the same characteristics of Ordinary shares except the right to vote at the company's AGM.

Preference Shares (P) offer

• Limited ownership rights.
• A claim on the company's earnings before payment to ordinary shareholders.
• Entitled to priority over ordinary shares if the company liquidates.
• Most preference shares have a pre-determined dividend rate which you are entitled to receive.

Warrants (W)

• This is a certificate giving you the right to buy shares at a stipulated price at a future date.