What is the difference between ordinary, preference and deferred shares?
So running a limited company is all about making smart decisions. When it comes to shares. There’s more than one type to choose from. So there’s ordinary shares which everyone knows about, and that gives you a say in the company’s decisions and share the profits and so on. Also, preference shares, uh, and then maybe that could give you a guaranteed dividend, but no voting rights.
Finally, there’s deferred shares, these could give you a share the profits at a later date. So by creating different categories of shares, you can attract a wider range of investors and raise more capital and just do it all in a more flexible way. And best of all, it gives you more control over how your company’s run and also how profits are distributed.
So please like, comment, share to get more tips, and go to my website for more. Or if you want to ask me a question, so do you think it’s a good idea to have different classes of shares, or do you think it’s better just having them all the same as ordinary shares? What do you think? That’s all for now.