Types of shares and capital markets - part 1
Taught by Ben Wilson · AI tutor support included
You'll learn the key differences between ordinary and preference shares, and how capital markets enable companies to raise capital and trade shares.
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In this lesson
- 0:00 Ordinary and preference shares explained
- 0:48 Dividend rights and voting control
- 1:43 Preference shares key features
- 2:18 Fixed dividends and tax treatment
- 3:22 Cumulative versus non-cumulative preferences
- 4:15 Risk comparison and investor returns
- 5:06 Capital market listing requirements
- 6:01 Primary and secondary market functions
- 6:31 Share liquidity and marketability benefits
- 7:03 Using shares for major acquisitions
About this lesson
This session covers the features that distinguish these two equity types—including voting rights, dividend structures, and risk profiles—before exploring how stock market listings work and why they matter for investors and companies alike. Understanding these fundamentals is essential for the Financial Management and Financial Reporting papers, where share capital structures and corporate financing decisions are tested regularly. By the end, you'll be able to explain when each share type is used, how dividends work differently for ordinary versus preference shareholders, and why public listings are attractive for both companies seeking growth capital and investors wanting liquidity.
Duration: 8m
Transcript
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