Good Morning everyone. Before we start, let me introduce my self.

My name
is syifa urrohmah from faculty of accounting state polytechnic of Jakarta.
Today, i want to talk about shares. Well, i’ll start with the definition of shares,
and then move on to types of shares. We’ll leave the conclusion and question in
the end. and i hope you’ll excuse my english, i’m a little out of practice.

Now firstly, as you all know, Shares is a unit of ownership in a company. It

means the shares of accorporation, but is also used for collective investments
such as mutual funds and limited partnerships. And then, The owner of shares
are called shareholder. One basic measure of acompany’s worth is market
value, which is the number of outstanding shares multiplied by the price of a
share.

Secondly, There are 2 type of shares : ordinary shares and preference shares.

Ordinary shares is a share of a company providing the owner to vote at

shareholder meeting and to receive a dividend.

Preference shares is a share in a company that gives the owner to receive a

dividend before dividends are paid to owners of ordinary shares.
Next, Preference shares has some various features. These terms are the
following:

a. Cumulative. Dividends not paid in any year must be made up in a later

year before paying any dividends to ordinary shareholders.
b. Participating. Holders of participating preference shares with the ordinary
shareholders in any profit distribution beyond a prescribed rate. This
participation involves a distribution based on the total par value of the
outstanding preference and ordinary shares.
c. Convertible. Preference shareholders may, at their option, exchange their preference
shares for ordinary shares on the basis of a predetermined ratio.
d. Callable. At the option of the issuing corporation, preference shares can be redeemed
at specified future dates and at stipulated prices.
e. Redeemable. The shares have a mandatory redemption period or a redemption feature
that the issuer cannot control.

OK, so just before closing, I’d like to summarize my main points again. Shares
is a unit of account for various investment. And Shares can be classified into
two section, they are ordinary shares and preference shares. Well, that’s all i
have for today. Thank you for your attention and if there are any questions
please feel free to ask.
Common stock is the residual corporate interest
that bears the ultimate risks of loss and receives the benefits of success. It is guaranteed
neither dividends nor assets upon dissolution. But common stockholders
generally control the management of the corporation and tend to profit most if the
company is successful. In the event that a corporation has only one authorized issue
of capital stock, that issue is by definition common stock, whether so designated in
the charter or not.

Stock is general term used to describe the ownership certificates of any company, and
“shares” refers to the ownership certificates of particular company. So, if investors say they
own stocks, they are generally reffering to their overall ownership in one or more companies.
Technically, if someone says that they own shares / the question then becomes – shares in
what company?

Shares is a unit of account for various investment. It often, means the stock of accorporation,
but is also used for collective investments such as mutual funds, limited partnerships, and real
estate investment trusts.

The owner of the corporation’s common or preferred share is known as a shareholder.

Ordinary shares represent the residual corporate interest.

 Bears ultimate risks of loss.

 Receives the benefits of success.

 Not guaranteed dividends nor assets upon dissolution.

Preference shares are created by contract, when shareholders’ sacrifice certain rights in
return for other rights or privileges, usually dividend preference. preferred stock is a special
class of shares that possesses certain preferences
or features not possessed by the common stock.

Preferred stock is a type of capital stock issued by some corporations

The following features are

those most often associated with preferred stock issues.
1. Preference as to dividends.
2. Preference as to assets in the event of liquidation.
3. Convertible into common stock.
4. Callable at the option of the corporation.
5. Nonvoting.

Cumulative preferred stock requires that if a corporation fails to pay a dividend in

any year, it must make it up in a later year before paying any dividends to common
stockholders.
Holders of participating preferred stock share ratably with the common stockholders
in any profit distributions beyond the prescribed rate. That is, 5 percent preferred stock,
Certain terms are used to describe various features of preference shares. These terms are the
following:

a. Cumulative. Dividends not paid in any year must be made up in a later year before
paying any dividends to ordinary shareholders. Unpaid annual dividends on cumu-
lative preference shares are referred to as dividends in arrears and are disclosed in
a note to the financial statements.
b. Participating. Holders of participating preference shares share with the ordinary
shareholders in any profit distribution beyond a prescribed rate. This participation
involves a pro rata distribution based on the total par value of the outstanding
preference and ordinary shares.
c. Convertible. Preference shareholders may, at their option, exchange their
preference shares for ordinary shares on the basis of a predetermined ratio.
d. Callable. At the option of the issuing corporation, preference shares can be
redeemed at specified future dates and at stipulated prices.
e. Redeemable. The shares have a mandatory redemption period or a redemption
feature that the issuer cannot control.

CORPORATE CAPITAL
Owner’s equity in a corporation is defined as stockholders’ equity, shareholders’ equity,
or corporate capital. The following three categories normally appear as part of stockholders’
equity:
1. Capital stock is the combination of corporation’s common stock and preferresd stock.
2. Additional paid-in capitalis the total amount paid in on capital
stock—the amount provided by stockholders to the corporation for use in the business.
3. Retained earnings is represents the earned capital of the
company