Business Plan

Shares is a unit of value, or book in a variety of financial instruments relating to the ownership of the company. On the issuance of shares, the company may require long-term funds to sell equity shares of the Company in exchange for money. This is the main way to increase the capital of the company, other than bonds. The sale of shares to make the primary market or secondary market.

Type of shares

The action consists of several types of common and preferred stock. Typically, preferred stock will have been identified as a mixture of stocks, with characteristics similar to common stock. Meanwhile, common stock has a type. But in some cases more than one, according to business needs.

For common stocks, there are several types, such as shares of class A, class B, class C, and others. Each class each have advantages and disadvantages of each. Please note, the symbol of the letter does not mean anything

Characteristics of Shares

1. Shares Options

- Having a variety of levels, can be issued with different characteristics.
- Claims against the assets and income. Preferred Shares has a higher priority than common Shares in dividend distribution.
- Dividends are cumulative. If not paid from the previous period, then it could be paid in the current period and in advance of its common Shares.
- Convertibility. Prefer shares can be converted into ordinary shares if the shareholder agreement between publishers and organizations formed.

2. Common shares

- Voting rights of shareholders may elect the board of commissioners.
- Rights take precedence if the organization issuing new shares issued.
- Liability is limited to the amount of a given program.

Shares Category

1. Blue Chip Shares

Common Shares that has a high reputation as a leader in the industry and have a stable income and consistent in paying dividends.

2. Income Shares

Shares of the issuer with the ability to pay dividends higher than average dividends paid in the previous year.

3. Growth Shares

Shares of this category consists of well-know and not know.

4. Speculative Shares

Shares consistently earn revenue from year to year and has the possibility of high earnings in the future, but not sure.

5. Counter-cyclical Shares

This category of shares is not affected by macro economic conditions and the general business situation.