- Ordinary Shares: receive a fixed dividend after the company has paid preference shares and the debenture holders. The shareholders of ordinary shares have right to vote in AGM.
- Preference Shares: promise to pay their owners a fixed dividend but they do not have rights on voting in AGM
- If the company goes bankrupt the preference shares are the first people who receive their money from disposal of the firm’s assets. If there are any residuals then they are paid to the ordinary shares according to the number of shares issued.
Business Studies IGCSE