Preferred Shares -
Preferred Shares are shares which provides a specific dividend. It is
paid before the common share holders get paid. Preferred shares take
precedent over common shares in the event of a liquidation. These shares
represent part of an ownership of a company. Preferred shareholders
do not enjoy voting rights, like common stock holders do. Preferred
shares pay a fixed dividend, although the company does not have to pay
dividend when it lacks the financial ability to pay. Still, in regard
to common share holders, preferred share holders get their dividend
before common share holders do. Investors with preferred shares also
have a bigger claim on the assets of a company.
Employee Stock Ownership
Plan - an Employee stock ownership plan is a trust by a corporation
to its employees. It is a plan to make the employees part owners of
the company by allowing them to purchase shares of the company.
Contributions are made by the employee to the...