There are basically two types of shares.

There are basically two types of shares.

1. Ordinary shares also known as common shares
2. Preference Shares

Ordinary Shares

Ordinary shares are issue to general public at fixed price and then these shares are traded in equity market i.e ( Stock Exchange). The ordinary shares are bought by investor for dividend earning and capital appreciation.

Preference Shares


Preference shares are basically issued against a fixed rate of return. company has to pay this return even in case of loses is reported by the company .