There are two (2) types of stocks in terms of RIGHTS.
1. Common Stock: A common stockholder exercises control
through voting rights during annual or special stockholders’ meetings.
2. Preferred stock: It is a security whereby the holder
has a higher claim on the assets and earnings of the company. It combines
features of debt (dividend) and equity (price appreciation).
Non-voting
:
It has no voting rights.
Cummulative
Dividends: If the company missed dividends payment in
the past, the owed dividends should be paid first even compared other preferred
shares.
Convertible:
The holder has the option to convert the preferred shares into a fixed number
of common shares.
Callable:
The issuer has the right to call in or redeem the stock at a preset price.
Notes:
Some companies issued voting preferred shares mainly owned by Filipino because
of the foreign ownership limit. Preferred shares are not mentioned in this
book.