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Class A or Class B shares |
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Class A or Class B sharesSee: Classified stockClass A or Class B shares Similar MatchesPaired sharesPaired sharesStock of two companies under the same management that are sold as one unit with one certificate. Capital sharesCapital sharesShares which entitle the holder to receive the capital appreciation from a split capital investment trust. The other type of shares in such a fund are income shares which receive the fund's income. Penny sharesPenny sharesLiterally, any share costing less than 100p, but in a recent paper on the subject, the Financial Services Authority designated penny shares as shares which have limited liquidity - in other words, that are hard to buy and sell in quantity without moving the price. Specifically, the FSA singled out those with a spread of 10% or more between buying and selling prices.The FSA definition highlights one of the dangers of penny shares: in order to make a profit on them, you need a significant rise in share price just to cover the wide spread. There is no evidence that penny shares as a class have any more potential to appreciate in price than higher-priced shares. The reason is simple: Price in itself is not a measure of value. It only becomes a measure of value in relation to other factors, e.g. price-to-earnings or price-to-assets.Novice investors often make the mistake of equating low share price with value. That's a fundamental error. A share costing £10 can easily be better value than one costing 10p, if the Net Asset Value per share of the two companies is £12 and 5p respectively. What matters is the size of the 'cake' to which the shares relate, and the number of shares in issue. Bearer stocks/sharesBearer stocks/sharesStocks or shares which do not record owner's names and for which the companies do not keep a register of ownership. Possession of the certificate is therefore the only proof of ownership. Fully diluted earnings per sharesFully diluted earnings per sharesEarnings per share expressed as if all outstanding convertible securities and warrants have been exercised. Further SuggestionsPerformance sharesdelta shares beta shares income shares ordinary shares Outstanding shares cumulative preference shares stepped preference shares redeemable preference shares Equal shares swap participating preference shares Capital shares permanent interest bearing shares preference shares gamma shares Common shares Identified shares alpha shares recovery shares partly paid shares windfall shares nil paid shares Ordinary shares American shares guilder shares (New York Shares) |
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