Monday 4 May 2009

Types of stocks and bonds


There are many types of shares in the stock market, such as (ordinary shares, and free, and excellent, and the shares, and restricted and unrestricted), and can distinguish between all these

species in the stock market as follows:


- Ordinary shares:
the title is a right of ownership of the company, and give the bearer the right to attend the annual General Assembly of the company, access to distribution if the company achieved a profit.
- Bonus shares:
which is distributed to shareholders by having the ordinary shares, and shareholders are free to increase as the company's capital, and generated by the holding parts of the company's profits; and therefore the shareholders have the right to this increase in capital.
- Preference shares:
which gives the owner additional rights not enjoyed by the ordinary shares, such as that the owner receives the primacy of shareholders to have access to the regular portion of the profits of the company, and the owner has priority in access to rights upon liquidation of the company by a shareholder regular, and after the bond holders.
- Treasury shares:
Shares which are the company to re-purchase from the market through the Stock Exchange, the shares are not entitled to distributions or voting rights during the period of its ownership of the company.
- Restricted stock:
the words and registry for the registration and classification of the stock on the stock market, whether local or global, in particular through the actions of the registry, so as to give the Stock Exchange with the rights of the rights of this restriction.
- Unquoted shares:
it is the non-registered stock exchange, whether local or global stock markets.
- Coupon stock: which is the return on the stock, and this is a profit earned by the share of investment in the company.
On the contrary, this is not a large number of many types of bonds, and we must here distinguish between bonds issued by private sector companies, government bonds; where I serve as a loan guaranteed by the investment company's financial position, and the second loan is aimed at public spending and its government.

- Bonds issued by the business:
The bonds issued by the business as a contract or agreement between the business (the borrower) and the investor (lender). Under this agreement lends a certain amount of the second party to the First Party, which vows to turn out of the cold and benefits agreed upon in specific dates. May involve other terms of the contract for the benefit of the lender, such as certain fixed assets subject to a guarantee of payment or place restrictions on the issuance of other bonds at a later date. It may also include contract terms for the borrower, such as the right to call bonds before the maturity date.

Government bonds:

Means of debt instruments, government bonds of medium-and long-term issued by the Government in order to obtain additional resources to cover the shortfall in its budget or to meet inflation.
And consider the investor to the securities issued by the Government to be more attractive; It usually has a return of tax exemption, which is rarely achieved with other financial papers. In addition, diminishing the risk of stopping the risk of payment or to postpone it. The central government can increase its financial resources to meet the debt service by issuing more banknotes or by imposing new taxes, if forced to do so.

Typically, the papers are published in the State of information on these securities, such as the date of maturity, coupon rate, and the change in purchase price than in the previous day, and the revenue that can be achieved by the investor.

0 comments:

Post a Comment

Total Pageviews