What are the different types of Shares?

When issuing shares (share issue), companies can opt for very different types of shares, which refer to different rights of the shareholder (shareholder). By purchasing shares, shareholders participate in a company as co-owners.

The most important rights associated with shareholding are listed below:

• Voting rights
• Right to information
• Right to share profits (dividend distribution)
• Participation in the Annual General Meeting

The constellation of rights granted may differ depending on the class of shares. Here is an overview of the essential types of shares (classes ) and their unique features:

Ordinary shares (common shares ) are the most common form of shareholding. They grant all of the rights mentioned above through their acquisition.

• Preferred shares usually have higher profit participation than common shares of the same company and may grant reduced or no voting rights.
• Anyone can purchase registered shares. However, the respective owner is entered in the share register.
• Restricted registered shares are registered shares that can only be acquired with the consent of the stock corporation.any, companies have a legal form on the stock exchange as a stock corporation (or public company) (AG) or a partnership limited by shares, KGaA. There is also the European form (Societas Europaea, abbreviated SE), the US Inc, British PLC, and South Africa Ltd.