Stock's Category Definition the shares in proportion to contribution to the company with vote o Ordinary shares where the shareholders bear the ultimate risk of loss should the company fail, they have no preferential right to the return of their fund Preference shares the shareholders have fixed payner(not fluctuating with the good or bad performance of the company), and have a over th ordinary shareholders. when liquida, the shareholders have preference with regard to repayment of capital. without votes, the shareholders cannot take part in the operation of the company ° Comparison preference shares is less risky than ordinary shares, with limited participation in the profit and decision makingStock’s Category • Definition – the shares in proportion to contribution to the company with vote. • Ordinary shares – where the shareholders bear the ultimate risk of loss should the company fail, they have no preferential right to the return of their funds. • Preference shares – the shareholders have fixed payment (not fluctuating with the good or bad performance of the company), and have a preference over the ordinary shareholders. – when liquidation, the shareholders have preference with regard to repayment of capital. – without votes, the shareholders cannot take part in the operation of the company • Comparison – preference shares is less risky than ordinary shares, with limited participation in the profit and decision making