Equities and Types of Equities of DSE

27/02/2013 21:13
Equities

Equity product is the securities issued by public companies to mobilize funds from the publics. Shareholders have a direct stake in the issuer company and are entitled to vote and participate in major decisions at the shareholders' meetings.

Investors have 2 choices to invest in equity product either in Dhaka Stock Exchange(DSE) or Market for Alternative Investment (mai) depending in the listed companies' decision to list in any market.

 

Types of equities

Ordinary Shares The direct rewards for holding ordinary shares are dividend from the company's profit, capital gains and rights to buy the company's new shares when it decide to increase its registered capital.

 

Preferred Share are also equity instruments. The difference between a preferred share and an ordinary share is that the holder of preferred shares will be entitled to a share in the company's funds before ordinary shareholders do.

 

Warrants. A warrant holder is entitled to buy a fixed amount of shares at a predetermined price and time. Warrants are issued in conjunction with a new share issue to induce investors to subscribe to the new shares.

 

Unit Trusts are investment units in mutual funds issued by investment management companies.

 

Non-Voting Depository Receipt. An NVDR is a new trading instrument issued by Thai NVDR. It is a valid security as specified by SEC and is automatically regarded as a listed security by DSE. By investing in NVDR, investors receive the same financial benefits as those who invest directly in a company's ordinary shares.

 

Depository Receipt : DR is issued by Siam DR . By investing in DR, investors receive the same financial benefits as those who invest directly in a company's ordinary shares.