Chuyên đề tài chính

EQUITY SECURITIES
GROUP 8


SERVICES
NE T WO RK S OLU TI ON
1

A w i d e v a ri ety o f ea si l y sca l a b l y n etwo rk
so l u ti o ns t ha t c an b e ea si l y i nteg ra ted
i n to an y i n f ra stru c tu re.

WI R E LES S TE R R ES T R I AL B R OA DB AND
2

En a b l es t he l i g ht ni n g -speed n etwo rk
sp eed to th e c us to mers.

T ELE C OM VA LU E AD D ED S ERV IC E
3

An o ff eri n g of rel ev a nt, custo mi zed , a nd
c on ten t- ba sed s ervi ce ov er SM S, US S D,
a nd WAP.


TABLE OF
CONTENTS
01

Types and

Characteristics of
Equity Securities

02

Private versus Public
Equity Securities

0
3
0
4 Equity
05 Securities and

Investing in
Nondomestic Equity
Securities
Risk and Return
Characteristics of
Equity Securities

Company Value



TYPES AND
CHARACTERISTICS OF
EQUITY SECURITIES
Preference Shares

Common Shares


TYPES AND
CHARACTERISTICS OF
EQUITY SECURITIES
Preference Shares

Common Shares


COMMON
SHARES

Common shares are the most common form of equity and
represent an ownership interest in a company


COMMON SHARES

Right to
vote
Statutor
y

Cumulativ
e

Option to
Embed

Callabl
e

Putabl
e


PREFERENCE
SHARES

Preference shares are the company stock that rank above common
shares with respect to the payment of dividends and the distribution
of the company’s net assets upon liquidation.


PREFERENCE
SHARES

Preference Shares
(Types)

Right to dividend

Right to profit

Option to convert

Cumulative

Participating

Convertible

Non - cumulative

Non - participating


Cumulative preference shares

Non-cumulative preference shares

TYPES OF
PREFERE
NCE
SHARES


CUMULATIVE PREFERENCE
SHARES
Cumulative preference shares require the companies to pay
cumulative dividends in the coming year when they incur
profit, in case there are any unpaid dividends.


NON - CUMULATIVE PREFERENCE
SHARES
Non-cumulative preference shares are in which the
shareholders do not get accumulated outstanding dividends
for the years when there are insufficient profits.

Participating preference shares

Non-participating preference shares

TYPES OF
PREFERENCE
SHARES


PARTICIPATING PREFERENCE
SHARES
Preference shareholders usually get a fixed rate of dividends.
However, participating preference shares offer additional
benefits.


NON - PARTICIPATING
PREFERENCE SHARES
Shareholders owning these shares do not enjoy the right to
participate in extra profits and only get fixed dividends.


CONVERTIBLE PREFERENCE
SHARES
Convertible preference shares are those in which the holder
gets the right to convert them into equity shares after a
specific time mentioned in the memorandum.

Common Shares

Preferred Shares

Ownership

Yes

No

Cash Inflows

Less predictable; Lower

More predictable; Higher

Voting rights

Yes

(Mostly) No

Dividend Payment
Order

After debtholders and preferred
stockholders

After debtholders

Fixed Dividend

No

Yes

Firm’s Obligation to
Pay Dividends

Not Obliged

Obliged


Long - term financial statement
and
Short - term financial planning


PUBLIC EQUITY SECURITIES
Securities that are openly or easily traded in a public market (NYSE,
BSE...).

PRIVATE EQUITY SECURITIES
Securities that usually issued to institutional investors via private
placement.