5.3. Banking and Finance - Types of Shares

.... (or stock), again as the name suggests, do not receive a dividend until other categories of shares have had a dividend paid on them, but might earn a higher dividend if the company does well.

Deferred shares

.... are often the only kind of shares with voting rights.

Ordinary shares

.... , as their name suggests, usually receive a fixed dividend, which must be paid in full before any dividend is paid on other shares.

Preference shares

Widely-held stocks that can be considered as indicators of present and future market performance, are known as .... or bellwether stocks.

barometer stocks

Securities in companies that are considered to be without risk are known as ....

blue chips

A.... or income stock or share is one that offers a good yield but only a limited chance of a rise or decline in price.

defensive stock

Another name for stocks and shares is ...., because all the stocks or shares of a company - or all those of a particular category - have an equal nominal value.

equities

A .... or share is one that is expected to appreciate in capital value; it usually has a high purchasing price and a low current rate of return.

growth stock

A way of spreading risks is to invest in a unit trust or a .... (in the US), organizations that invest small investors' money in a wide portfolio of securities.

mutual fund

Some companies issue .... which, like shares, grant their holders part of the ownership of a company, but usually without voting rights.

participation certificates