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tabaldi.org for a series of UNISA items Check out www. tabaldi.org for a variety of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, Redeemable preference shares Preference shares can be redeemable This indicates that the business might have the option or be needed to buy the preference shares back (i. e. redeem). Need More Info? of redemp3on might be with the company itself, or the holder of the shares (the individual who bought the shares), this will depend upon the private preference shares and arrangements.
tabaldi.org for a variety of UNISA products See www. tabaldi.org for a variety of UNISA products FAC2601-SU4-Summary Copyright Tabaldi Education, Par2cipa2ng choice shares Par3cipa3ng preference shares have two components for dividend: a repaired % dividend (typically lower than a regular choice share) A share of the regular dividends (called a par3cipa3on in the normal dividend) Visit www.
tabaldi.org for a series of UNISA products FAC2601-SU4-Summary Copyright Tabaldi Education, Conver2ble preference shares Conver3ble preference shares will (or may be) transformed into normal shares: Not constantly a mandatory conversion, some3mes it might be op3onal (either by issue or holder) Requirements a ra3o of common shares to preference shares for conversion, for instance 3 choice shares will be converted into one ordinary share.


tabaldi.org for a series of UNISA products Go to www. tabaldi.org for a variety of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, Combina2on of the above Choice shares may have a large number of varia3ons and many of the varia3ons describe the kinds of dividends linked to the choice share; All of the types of preference shares noted above may be combined For example: Cumula3ve, redeemable preference shares; or Non cumula3ve, conver3ble par3cipa3ng choice shares Check out www.
tabaldi.org for a variety of UNISA items FAC2601-SU4-Summary Copyright Tabaldi Education, CONCERN OF CAPITALISATION SHARES Study Unit 4: Share Transac3on Check out www. tabaldi.org for a variety of UNISA items Visit www. tabaldi.org for a series of UNISA products FAC2601-SU4-Summary Copyright Tabaldi Education, Capitalisa2on shares No money is paid Shareholders get shares Typically done rather of dividends Likewise referred to as a Reward Issue No real advantage if released to all shareholders in propor3on to present shares held Simply a book entry to convert reserves into share capital If shares not provided in propor3on to present shareholding then there is economic compound Check out www.