Types of share in the public company
Oxford Oxfordshire: Oxford University Press. First, because financial risk is presumed to require at least a small premium on expected value, the return on equity can be expected to be slightly greater types of share in the public company that available from non-equity investments: if not, the same rational calculations would lead equity investors to shift to these safer non-equity investments that could be expected to give the same or better return at lower risk. The demand is the number of shares investors wish to buy at exactly that same time. In fact, different share classes can have identical rights to other classes. We will return to these concepts in our discussion of dividends. Shareholders are granted special privileges depending on the class of stock, including the right to vote on matters such as elections to the board of directorsthe right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company.
