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Advantages
- Shareholders have the right to vote
- Shareholders have the ability to elect the board of directors
- Shareholders are able to buy as many new stocks as possible
- No guaranteed dividend
Wiki User
∙ 12y ago
Wiki User
∙ 11y agoDisadvantages
1. Permanent burden on the company to pay a fixed rate of dividend before paying anything on the other shares.
2. Not advantageous to investors from the point of view of control and management as preferences shares do not carry voting rights.
3. Compared to other fixed interest bearing securities such as debentures, usually the cost of raising the preference share capital is higher. :)
Wiki User
∙ 15y agoplease up me out.. what is the advantages of ordinary shares with explaination..
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What is ordinary share capital?
Ordinary share capital is that type of share capital which receives share in profit in last or after all other third parties liabilities as well as preference share holders.
How do you calculate ordinary share in the capital of the company on payment?
recording share capital in accounting
How many Type of share capital?
ordinary share prefered share defered share
Where does 'ordinary share capital' go on a balance sheet?
Ordinary share capital is shown under equity section of balance sheet as all kind of capital is shown in equity section
What are the disadvantages of share capital?
Disadvantage of share capital is that it increases the risk of default which causes the increase in cost of capital.
What are the advantages and disadvantages of share capital?
banter
What are the advantages and disadvantages of direct investment in ordinary shares?
Direct investment in ordinary share is less complicated. However, the disadvantage is that the investor is not protected from risk if they invest directly in ordinary shares.
What are the disadvantages of share capital if second partner increases more than first partner?
it going to increase
Advantages and disadvantages of preference share?
Some of the advantages of the preference share is the absence of the fixed regular income and less capital loses. Some of the disadvantages includes the dilution of claim over assets and the high rate of dividends.
What are types of share capital?
Following are different types of share capital. 1 - Preference share capital 2 - Common share capital
How many types of share?
ordinary share prefered share defered share
What are the different sources of capital?
· Bank lending· Capital markets· Debenture· Deferred ordinary shares· Franchising· Government assistance· Hire purchase· Loan stocks· New share issue· Ordinary shares· PARTS· Preference shares· Retained earning· Rights issue· Sources of funds· Venture capital· Rights issue· Sources of funds· Venture capital
