Stock Types

Types of shares :

A. Ordinary shares (common stock) 

Ordinary shares are shares that puts the most junior owner of the dividends and rights to property companies when the companies were liquidated (no special privileges). Other characteristics of ordinary shares is the dividend paid if the company makes a profit. People who have the shares have the right to take part in managing the company. The size of the voting rights held in accordance with the size of shares held, the more the percentage of shares held, the greater the voting rights held for the operational control of the company. Ordinary shareholders have limited liability claims against other parties in accordance with the proportion of shares and have the right to transfer shares to another person kepemilikkan. 

B. Preferred stock (preferred stock) 

Preferred stock has characteristics of a combination of bonds and common stock, because it can generate a fixed income such as interest on bonds. There are similarities between preferred stock with bonds: 1. no claim on the earnings and assets of the previous 2. during the stock dividend will remain valid 3. have the right to redeem and can be exchanged for common stock Preferred stock is safer than common stock because it has a claim against the assets of companies and dividends first. And the owners will have more rights than the rights of owners of common stock, for example voting in elections of directors so that the management will try my best to pay a preferred dividend payment accuracy not to resign. But the preferred stock is difficult to be traded like ordinary shares since the amount is small. Bills. U.S. Government Treasury Bills issued in janka time 91 or 182 days (offered weekly) or 52 days (offered monthly). Investors buy T-bills at a discount and if the instrument is held until maturity, the results (yield) is equal to the difference between the discounted price with a nominal price. Repo and Reverse Repurchase Agreement Repo is an agreement between the seller & buyer of the effects which the seller promises to buy back the intended effects on an agreed price and the time period specified. Reverse repo is the reverse than the Repurchase Agreement is to buy back the effects and investors promise to buy effects and investors promise to buy the effects referred to in the agreed price for the time period specified. Goals from repo transactions are institutions that have excess funds including: Banks Government