companies continued........

Shares

• Capital raised by company by selling part ownership of a company to the public.

Types of shares

•    Ordinary shares - allows Shareholders to vote. 1 vote per share. Entitle owner to a share of company profits. However, dividends are not guaranteed. Therefore, investing in ordinary shares is riskier from an investor's point of view

•    Preference shares - preference shareholders have preference over ordinary shareholders if company is liquidated. These Shareholders receive a fixed % dividends annually.

Authorised shares - maximum number of shares a company's MOI permits it to issue.

Issued shares - number of shares a company has actually sold.

Issue price - price at which shares are sold. This will be different at various stages the company's life.

UNISSUED SHARES = AUTHORISED SHARES - ISSUED SHARES

(refer to the pdf attached)