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Chapter 4





                           Equity finance





               6.1 Terminology



                              Ordinary shares

                              Dividends paid at the discretion of the company's directors.

                              Ordinary shareholders are the owners of the company, attend
                              meetings and vote on any important matters.

                              Subordinate to all other finance providers on a winding up.



                              Preference shares


                              A form of equity that pays a fixed dividend, paid before ordinary share
                              dividends.


                              On a winding up, preference shareholders are subordinate to debt
                              holders and creditors, but receive their pay-out before ordinary
                              shareholders.


































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