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Definitions you need to know:

Capital expenditures : are funds used by a company to acquire,


upgrade, and maintain physical assets such as property, plants,
buildings, technology, or equipment. CapEx is often used to undertake
new projects or investments by a company
‫ هي األموال التي تستخدمها الشركة القتناء األصول المادية وتحديثها‬:‫النفقات الرأسمالية‬
‫ غالًبا ما تستخدم‬.‫وصيانتها مثل الممتلكات أو المصانع أو المباني أو التكنولوجيا أو المعدات‬
‫النفقات الرأسمالية للقيام بمشاريع أو استثمارات جديدة من قبل الشركة‬

acquisition is when one company purchases most or all of another company's


shares to gain control of that company.

‫االستحواذ هو عندما تشتري شركة ما معظم أو كل أسهم شركة أخرى للسيطرة على تلك‬
‫الشركة‬.

Differences: Common vs Preferred Shares

1. Company ownership

Holders of both common stock and preferred stock own a stake in the
company.

2. Voting rights

Even though both common shareholders and preferred shareholders own


a part of the company, only the common shareholders have voting rights.
Preferred shareholders do not have voting rights. For example, if there
were a vote on the new board of directors, common shareholders would
have a say, whereas preferred shareholders would not be able to vote.

4. Claim to earnings

When a company reports earnings, there is an order where investors are paid out.
Usually, bondholders are paid out first, and common shareholders are paid out
last. Because preferred shares are a combination of both bonds and common
shares, preferred shareholders are paid out after the bond shareholders but before
the common stockholders.

In the event that a company goes bankrupt, the preferred shareholders need to be
paid first before common stockholders get anything

5. Conversion

Preferred shares can also be converted to a fixed number of common shares, but
common shares cannot be converted to preferred shares

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