Common Share in English

📘 What is a Common Share?

A common share is a paper or digital proof that shows you own a small part of a company. When you buy a common share, you become a part-owner of that company and can also share in its profits.

🔹 Key Features of Common Shares:

• ✅ Ownership: You become a part-owner (shareholder) of the company.
• ✅ Voting Rights: You can vote in the company's AGM (Annual General Meeting).
• ✅ Dividends: You may receive dividends if the company makes a profit.
• ✅ Profit from Selling: You can sell the share at a higher price in the secondary market if its value increases.

🔴 Risks to Know:

• ❌ No Dividends: If the company doesn’t make a profit, you may not get dividends.
• ❌ Last Priority: In case the company shuts down, common shareholders are paid last.

🧩 Example:

If XYZ Company issues 1 million common shares and you buy 1,000 shares:

• 🔸 You own 0.1% of the company.
• 🔸 You may receive dividends if declared.
• 🔸 You can vote in the company’s meetings (AGM).

📊 Summary:

Common Share = Risk + Opportunity

If you are thinking long-term, common shares can be a good investment option. You get a chance for higher returns, ownership, and voting rights.

📌 Which is better?

• ✅ Want voting rights? → Choose Common Shares
• ✅ Want stable income? → Choose Preferred Shares

📢 Stay tuned to Trade4Nep for more share market knowledge in simple language.