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As mentioned in the previous article, we know that our government represents only about 30% of our retirement income, the pension scheme offers another company 30% and many of us n ‘have not. It is up to individuals to invest wisely in the short term and long term to compensate for falling short, if he or she would like to live comfortably in retirement without giving up some pension. In this article we will study the characteristics of common and preferred shares. Common and preferred shareholders are the owners of the companies providing the capital of the company. while common shareholders to take more risks, and can gain or lose more than holders of preferred shares, therefore, yields and dividends are higher than for preferred shares. 1. Characteristics of common sharesa) A vote at annual meetings and receive regular financial statements of the company. b) The possibility of sharing the company’s profits, capital gains (losses) and dividends, as the purchase of common shares represents a decision to forego certain security measures for the prospects of higher returns. If the company goes wrong, all or part of the investment of the holder of shares may be lost. c) holders of common shares may also claim on the assets of the company upon dissolution. privileges) Sometimes, ordinary shareholders are offered to buy additional shares directly from the company, often bellowing market prices without paying a commission and the rights to exercise or to buy more shares or sell them on market. This right is generally expired in three weeks. e) The Company may also issue common shares with warrants to attract new buyers. Warrants allow the holder to purchase shares of the issuer at a specified price, usually below the going rate prices in a given period and can be can be detached and sold separately. f) joint can be divided by the company by exchanging each share of more shares. 2. Characteristics of preferred shares issued by the company sharesPreferred who also represents ownership in a limited company / business. Some investors choose the preferred shares, common share because of their low risk and a greater assurance of regular income known as dividends. a) the ownership part of the company without the right to vote. b) a fixed dividend rate. c) Most preferred shares are cumulative. If the company does not pay dividends due each quarter, accumulated unpaid dividends in arrears and must be paid before dividends on shares are paid. Usually, the unpaid dividends usually causes the price of the stock market drop. d) the preferred shares are redeemable give the issuer the right to repurchase them at a later date. e) Some preferred shares are convertible giving investors the opportunity to convert into shares of the other company at a specified price within a certain time. I hope this information helps. If you need more information, you can read the complete series of the above object to my homepage: http://lifeanddisabitityinsuranceunderwriter. blogspot. com / http:/ / financialinvesting13. blogspot. com

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