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tabaldi.org for a series of UNISA products Visit www. tabaldi.org for a series of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, Redeemable choice shares Preference shares can be redeemable This indicates that the company may have the option or be needed to purchase the choice shares back (i. e. redeem). The choice of redemp3on might be with the business itself, or the holder of the shares (the person who acquired the shares), this will depend on the individual preference shares and arrangements.
tabaldi.org for a series of UNISA items Go to www. tabaldi.org for a variety of UNISA products FAC2601-SU4-Summary Copyright Tabaldi Education, Par2cipa2ng choice shares Par3cipa3ng choice shares have two elements for dividend: a fixed % dividend (usually lower than a typical preference share) A share of the normal dividends (called a par3cipa3on in the regular dividend) Go to www.

tabaldi.org for a variety of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, Conver2ble preference shares Conver3ble preference shares will (or may be) converted into regular shares: Not constantly an obligatory conversion, some3mes it might be op3onal (either by problem or holder) Needs a ra3o of common shares to choice shares for conversion, for example 3 choice shares will be transformed into one normal share.


tabaldi.org for a variety of UNISA items See www. tabaldi.org for a variety of UNISA products FAC2601-SU4-Summary Copyright Tabaldi Education, Combina2on of the above Choice shares may have a a great deal of varia3ons and most of the varia3ons refer to the types of dividends linked to the choice share; All of the types of choice shares noted above might be combined For example: Cumula3ve, redeemable choice shares; or Non cumula3ve, conver3ble par3cipa3ng preference shares Check out www.

tabaldi.org for a series of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, CONCERN OF CAPITALISATION SHARES Research Study Unit 4: Share Transac3on See www. tabaldi.org for a series of UNISA items See www. tabaldi.org for a variety of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, Capitalisa2on shares No cash is paid Investors get shares Normally done instead of dividends Likewise referred to as a Bonus offer Concern No real benefit if issued to all shareholders in propor3on to present shares held Simply a book entry to transform reserves into share capital If shares not provided in propor3on to current shareholding then there is economic compound Visit www.