Common Shares Diversification of Preferred Shares?

Quite simply, the owners of common shares are shareholders of the company and have voting rights. If there is more hair, the equity will be dispersed.

Preferred shares are similar to long-term bonds, which are generally not listed and circulated, and have no right to interfere in the operation of the enterprise, and do not have voting rights. Therefore, it does not affect the control of the majority shareholder over the company's equity.

You can look up the term preferred stock under the noun, and there should be a detailed introduction.

Main Differences Between Common Shares and Preferred Shares (1) Common shareholders enjoy the right to participate in the operation of the company, while preferred shareholders generally do not enjoy the right to participate in the operation of the company. (2) The earnings of common shareholders depend on the profitability of the company, while the earnings of preferred shares are fixed. (3) Shareholders of common shares cannot withdraw their shares and can only cash them out in the secondary market, while shareholders of preferred shares may request the company to redeem ** in accordance with the redemption terms attached to the preferred shares.

4) Priority is the most important type of special, which has priority in the distribution of the company's profits and surplus property.

Equity dispersion means that the number of major shareholders holding a large amount of shares is large, and the number of shares held is small. Equity concentration is the opposite.

Preferred shares are a variety between bonds and **, which can be used to raise funds, but investors who buy it cannot become shareholders of the company and can only enjoy fixed income, therefore, the issuance of preferred shares will prevent the dispersion of the company's equity.

Yes, and moreover, both are highly costly to raise funds, and preferred shares are higher than common shares.

1. It is different in the distribution of profits.

Preferred shareholders have priority in distributing the company's profits over ordinary shareholders in accordance with the agreed coupon dividend rate. The company shall pay dividends to preferred shareholders in the form of cash and shall not distribute profits to common shareholders until the agreed dividends have been paid in full.

2. It is different in the distribution of surplus property.

When the company is liquidated due to dissolution, bankruptcy and other reasons, the remaining property of the company after being liquidated in accordance with the relevant provisions of the Company Law and the Bankruptcy Law shall give priority to the payment of unpaid dividends to the preferred shareholders and the liquidation amount agreed in the articles of association, and if it is insufficient to pay, it shall be distributed according to the proportion of shares held by the preferred shareholders. Ordinary shareholders are entitled to a share of the company's remaining assets, but ordinary shareholders can only receive a share of the property after the company's creditors and preferred shareholders.

3. The difference between preferred shareholders and ordinary shareholders in terms of voting rights.

One of the most obvious differences between the rights of voting preferred shareholders and common shareholders.

1) Preferred shareholders do not attend the general meeting of shareholders and have no voting rights on their shares except in the following cases:

amending the Articles of Association relating to preferred shares;

A one-time or cumulative reduction of the company's registered capital by more than 10%;

merger, division, dissolution or change of corporate form;

issuance of preferred shares;

Other circumstances stipulated in the articles of association.

In addition to the resolution of the above matters, it shall be passed by more than two-thirds of the voting rights held by the shareholders of ordinary shares (including shareholders of preferred shares whose voting rights have been restored) present at the meeting, and by more than two-thirds of the voting rights held by the shareholders of preferred shares (excluding shareholders of preferred shares whose voting rights have been restored) present at the meeting.

2) Restoration of voting rights. If the company fails to pay dividends on preferred shares as agreed for three fiscal years or two consecutive fiscal years, the shareholders of preferred shares shall have the right to attend the general meeting of shareholders and vote jointly with the shareholders of ordinary shares from the day after the general meeting of shareholders approves the plan for not distributing profits as agreed in the current year, and each preferred share shall enjoy a certain proportion of voting rights as stipulated in the articles of association.

For preferred shares whose dividends are accruable to the next fiscal year, voting rights are restored until the company pays the dividends owed in full. For preferred shares with non-cumulative dividends, voting rights are restored until the company pays the current year's dividends in full. The articles of association may provide for other circumstances under which the voting rights of preferred shares are restored.

The remaining property of ordinary shares is distributed, and the limited liability company is distributed according to the proportion of capital contribution of the shareholders of Suiyan Fang, and the shares are distributed according to the proportion of shares held by the shareholders. The principle of distribution of the surplus property of an enterprise should generally be handled in accordance with the relevant provisions of the enterprise contract and articles of association, fully embodying the spirit of fairness and reciprocity, and taking into account the interests of all parties.

Article 186 of the Company Law of the People's Republic of China After liquidating the company's property and compiling the balance sheet and property list, the liquidation group shall formulate a liquidation plan and report it to the shareholders' meeting, the general meeting of shareholders or the people's court for confirmation. The company's property is distributed according to the proportion of shareholders' capital contributions, and the shares are distributed according to the proportion of shares held by shareholders. During the liquidation period, the company shall continue to exist, but shall not carry out business activities unrelated to the liquidation.

The company's property shall not be distributed to shareholders until it is repaid in accordance with the provisions of the preceding paragraph.

There is priority in the right to liquidation. x0d x0a 2, priority for dividend repayment. That is, when the enterprise pays dividends, preferred shareholders have the right to receive fixed dividends first, which is more secure than the irregular dividends of ordinary shareholders, and at the same time, the access authority is also more preferential.

Since preferred shareholders have the right of first refusal in the distribution of dividends, the distribution of dividends by ordinary shareholders is conditional on the payment of dividends owed to preferred shares for the current year or in arrears. Preferred stock dividends must be paid before common stock dividends are paid.

1.Different returns: The income of preferred shares is not affected by the company's operating conditions, and the income of common shares mainly depends on the company's operating conditions.

3.The order of asset distribution is different: in the event of bankruptcy liquidation of the company, the preferred shares are liquidated before the common shares.

4.Withdrawal is different: neither preferred shares nor common shares can be withdrawn, but preferred shares can be sold back to the company. Common shares can only be liquidated on the secondary market. ”

Talking about**, everyone may know**It is a valuable issue issued by the company**, in addition, do you know what a preferred stock is? As the name suggests, preferred shares must enjoy more "preferential" rights than ordinary **. What are the types of preferred shares?

Do preferred shares have the same voting rights as common shares?

**It is a certificate of ownership issued by the shares, and it is a valuable certificate issued by the shares to each owner as a shareholding certificate to raise funds and obtain dividends and bonuses. **It is further divided into common stock and preferred stock. Preferred shares have the following characteristics:

Fixed income, dividends first, repayment first, and little power.

Convertible Preferred Shares and Non-Convertible Preferred Shares；Convertible preferred stock refers to the conversion of preferred shares into a certain amount of common stock by the holder of preferred shares under certain conditions.

Repurchaseable and non-repurchaseable preferred shares；Repotable preferred shares are companies that are allowed to issue such preferred shares, and the issued preferred shares will be recovered according to the original ** plus a number of compensations.

Cumulative Preferred Shares and Non-Cumulative Preferred SharesParticipation in Preferred Shares and Non-Participation in Preferred Shares；In addition to the preferential receipt of dividends at the prescribed dividend rate, the holder can also share the company's remaining earnings with ordinary shareholders preferred shares, which are called participating preferred shares; Preferred shares that can only receive certain dividends but cannot participate in the company's additional dividends are called non-participating preferred shares.

Preferred stock with fixed dividend rate and preferred stock with variable dividend rate；Fixed Dividend Rate Preferred Shares are not adjusted during the duration of the Dividend Yield Preferred Shares; The dividend yield of a variable dividend rate preference stock is adjusted according to the agreed calculation method.

The sphere of power is different. Ordinary shareholders have the right to operate and manage, vote, vote and be elected to the company; Preferred shareholders, on the other hand, generally do not have the right to vote or to be elected, and generally do not participate in the company's daily operation and management and voting at shareholders' meetings.

Profits and surplus property are distributed in different order.

Preferred shares have priority over the distribution of the company's profits and surplus property. That is, when the enterprise pays dividends, the preferred shareholders have the right to receive fixed dividends first; When the company goes into bankruptcy and liquidation, the distribution order of the company's remaining property is: creditors, preferred shareholders, and ordinary shareholders.

Dividend yields are different.

The dividend income of preferred shares is generally fixed; The dividend yield of common stock is not stable, depending on the company's earnings for the year.

There are different ways to withdraw shares.

Generally speaking, the ** held by ordinary shareholders can only be withdrawn through the secondary market; In addition to being able to be traded on the secondary market, preferred shares can also be sold back to the company by agreement.

It is worth noting thatAlthough preferred shareholders generally do not participate in the company's business decisions and their voting rights are restricted, it does not mean that preferred shareholders do not have voting rights. Second, if the company fails to pay dividends as agreed for a long time, the preferred shareholders will be restored to the same voting rights as the ordinary shareholders, and can participate in the company's business decisions and participate in the voting spine together with the ordinary shares, which can be called the "restored voting rights" of the preferred shares.

In general, the existence of preferred shares can provide investors with diversified investment channels, enrich the best varieties, and promote the stable development of the capital market.

Cumulative Preferred Stock, Non-Cumulative Preferred Stock, Participating Preferred Stock, Non-Participating Preferred Stock, Convertible Preferred Stock, Non-Convertible Preferred Stock, Recoverable Preferred Stock, Non-Collectible Preferred Stock; In terms of voting rights, preferred shares do not have decision-making rights, voting rights, etc., while ordinary shares have voting rights and participate in decision-making.

Cumulative Preferred Stock and Non-Cumulative Preferred Stock. Cumulative preferred stock means that in a certain business year, if the company's profits are insufficient to distribute the dividends specified by Huizhen, shareholders of future preferred shares have the right to request a full supplement of the dividends that have not been paid in previous years. For non-cumulative preferred shares, although the company has the right to pay dividends before the ordinary shares obtained in the current year, if the profits made by the company in the current year are not enough to pay dividends in accordance with the regulations, the shareholders of non-cumulative preferred shares cannot request the company to pay retroactive shares in subsequent years.

Cumulative Preferred Shares and Non-Cumulative Preferred Shares; Participation in preferred shares and non-participation in the first shares; Convertible Preferred Shares vs. Non-Convertible Preferred Shares; Recoverable Preferred Shares vs. Non-Recoverable Preferred Shares. The difference between the preferential and ordinary ** is different, so it is different.

No, if you hold ** first after the results announcement said that there are dividends, then you have to wait for the company's general meeting of shareholders to hold approval, after the approval of the company will announce the registration date, only on the registration date you have the company ** you have dividends, and at the same time to remember the dividend cash arrival date, only on the dividend arrival date you can finally get cash.

1. The role of national economic development.

1) It can extensively mobilize, accumulate and concentrate the idle funds of society to serve the country's economic construction and development, expand the scale of production and construction, promote economic development, and achieve the effect of using domestic capital without borrowing domestic debts.

2) We can give full play to the market mechanism, break down the segmentation and regional blockade, promote the horizontal integration of funds and the horizontal connection of the economy, and improve the overall efficiency of resource allocation.

3) We can explore a new way for reforming and perfecting the organizational form of China's enterprises, which is conducive to continuously improving the organizational form of China's enterprises owned by the whole people, collective enterprises, individual enterprises, foreign-funded enterprises, and joint-stock enterprises, giving better play to the status and role of the joint-stock economy in China's national economy, and promoting the development of China's economy.

Fourth, it can promote the deepening and development of China's economic system reform, especially the in-depth development of the joint-stock reform, which is conducive to straightening out the property rights relationship, so that enterprises can take their places, perform their duties, use their rights, and get their benefits.

5) It is possible to expand the channels and methods of China's use of foreign capital, enhance its ability to absorb foreign capital, and help to make greater use of foreign capital and improve the economic efficiency of using foreign capital, so as to achieve the effect of using foreign capital instead of borrowing foreign debts.

Second, the role of ** investors.

From the investor's point of view, its role is as follows:

1) It can open up investment channels for investors, expand the range of investment options, adapt to the needs of investors for diversified investment motives, transaction motives and interests, and generally provide investors with the possibility of obtaining higher returns.

2) It can enhance the liquidity and flexibility of investment, which is conducive to the transfer of investors' share capital, so that investors can realize and recover investment funds at any time. The formation, improvement and development of the market provides favorable conditions for the liquidity and flexibility of investment.

c) ** adverse effects of the market.

Market activity also has a negative impact on joint-stock enterprises, investors and the development of the country's economy. The formation mechanism is quite complex, and the comprehensive utilization of a variety of factors and the special action of individual factors will affect the violent fluctuations of the ****. It is not only affected by political, economic, and market factors, but also by technical and investor behavior factors, so **** is often in frequent changes.

Frequent changes have expanded speculative activities in the market, making the market more risky.

The risk of the market is objective, which can not only cause economic losses to investors, but also may produce certain risks to joint-stock enterprises and the country's economic construction. This is a problem that must be faced.