Chapter 3 Objectives Equity and the different types of equity: Equity: involves the ownership if you have an equity investment you own part of something. Ordinary shares: Represent the bulk of the company’s ownership Contributing shares: New shares you may not add to pay for old shares straight away. Deferred div shares – Stipulation that div will only be paid after a specified period. Bonus Issue – Free issue shares to the shareholder Preferred shares – Fixed div …showed first 75 words of 670 total…

…showed last 75 words of 670 total…liability Companies: public companies where shareholders have no liability beyond what each has already subscribed. This type of company is limited to high risk and exploration companies. Companies limited by Guarantee: usually non-profit orginisations in which the liability of the members is limited to the amount they agree to pay. Private company: · Number of members limited to 50 · The right of the members to transfer their shares restricted · Unable to aproach the public to sell shares