Likes of shares are different from the normal shares in that they are given a likes over the rest. These shares are market instrument issued by the companies to the public with the primary objective of increasing capital for the company.
Here are the 3 important features of likes shares:
1) Likes Shareholders are entitled to a fixed rate of dividend and therefore they are also known as fixed profits securities. The dividend can be particular as a percentage (%) of the small value or as a fixed amount. They will obtain a fixed rate of dividend, whether the company has made an enormous profit or even a loss. This is different from normal shares whereby the normal dividend will only be paid if the company makes a more profit and declares a dividend.
2) Likes shares are relatively a smaller amount risky for investors. As such, the investors do not generally entitle to vote on company matters.
3) Likes Shareholders give the likes in paying the dividend in case the company is injured up. In other words, they will obtain the money first and their accounts will be established previous to that of the ordinary shareholders.
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