![]() When a company is doing well and making profits, dividends are paid to shareholders, usually in cash. And this is accomplished through increased regular profit sharing (the well-known dividend). If there's any doubt, the answer is more money. Now you may be thinking, "Paying more per share, but no voting rights - what's in it for me?" However, these shares usually do not include voting rights. ![]() Preferred shares generally cost more than common shares. Holders of common stock have the right to participate in this vote. Important business decisions of a stock corporation are usually made by voting among the owners at the Annual General Meeting. The right to have a say or vote is one distinguishing feature. There are also two types of shares: common and preferred, each with its own set of benefits and drawbacks. However, your say depends on how many shares you own in relation to the total shares issued by the company. Shareholders, taken as a whole, are the owners of a listed company. The goal is to make the individual share cheaper and thus easier to trade. In this process, already issued shares are converted into a larger number of shares with a lower par value per share (sometimes known as bonus shares).
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