How do you elect to become a Ordinary shareholder or preference shareholder

To become a preference shareholder or an ordinary shareholder, it depends on the type of shares you purchase when buying shares in a company. When a company issues shares, it can offer different classes of shares with varying rights and privileges.

Preference shares typically offer a fixed dividend rate and have priority over ordinary shares when it comes to receiving dividends and returning capital in the event of liquidation.

On the other hand, ordinary shares do not have a fixed dividend and their holders have voting rights and the potential for higher returns through capital appreciation.

When you buy shares in a company, you can choose to purchase either preference shares or ordinary shares, depending on your investment preferences and objectives.

The company will specify the types of shares it is offering and the associated rights and benefits.

It is important to carefully review the company’s prospectus or offering documents to understand the terms and conditions of the shares being offered before making a decision.

It’s worth noting that the availability of preference shares or ordinary shares may vary from company to company and may be subject to certain restrictions or conditions.