Finansero shares solid knowledge about shares

Trading shares of popular companies through Contracts for Difference (CFDs) is intuitive and hassle-free with Finansero. You can trade a diverse portfolio that includes some significant names worldwide without worrying about regulations and taxes applied when dealing with traditional stocks through our platform.

There are two types of shares: preference and common ones.

Preferential shares
The preference shares are a bit different from the common ones in that they have no voting rights but instead get paid out before any debts of the company. That makes them ideal for people who want their cash flow guaranteed after an initial investment – and it also means those holding these types of shares will be first to receive a payment if anything happens.

Common shares
Common shares are the type that is most often traded on a stock market. Their holders have voting rights and must be paid dividends by the company, but they don’t need to own any other equity or ownership stake to take advantage of these benefits.

Cumulative Preference Shares
Cumulative preference shares pay dividends even when the company profits in arrears. Holders of these types of stocks don’t lose anything if there’s negative profit, meaning you’re guaranteed to get your money back plus some extra for holding on!

Non-cumulative Preference Shares
The non-cumulative Preference Shares are shares that do not accumulate over the years. They guarantee an annual rate for dividends, but their holders do not receive any when profits aren’t enough to pay them out.

Participating Preference Shares
They are sharing the surplus profit by guaranteeing a fixed rate of dividend.

Nonparticipating Preference Shares
This type of share doesn’t share the surplus profit. It guarantees a fixed dividend rate, though.

Convertible Preference Shares
This type of shares can turn into equity shares for a previously fixed period.

Non-convertible Preference Shares
This type of share cannot convert into equity shares. Obviously.

Redeemable Preference Shares
They are repaid when a previously fixed period is over.

Irredeemable Preference Shares
This type of share is paid only at winding up and does not carry a redemption arrangement.