About Shares

About Shares

Ordinary Shares mean each shareholder owns part of a company i.e. a 'share' of the company. You have effectively made a loan to the company and in return you own part of the business. The Shareholder has the right to a share in the profits of the business (dividends) and the assets of the business. Preference Shares - these shares are similar to ordinary shares except that they have a preference (i.e. first in priority over ordinary shares) in the pay out of dividends and assets.

They normally have a fixed dividend. Warrants - This is an option (i.e. a choice) which gives the holder the right to buy ordinary shares in a business at a set price within a certain period.  They are not shares.  When the option period finishes the warrant becomes worthless. Warrants carry no rights to vote. Likewise if you choose not to exercise your warrant i.e. the right to buy, you cannot be forced to do so.

If you need some help understanding about shares book a callback with one of our advisers and they will explain everything.