DEFINITION OF TERMS-SHE

Preferred Shares
Ordinary Shares

• Represent the residual corporate • Shares that give the holders

interest the ultimate risk of loss thereof certain preferences
and receives the benefits of over other shareholders
success

4 basic rights • Dividends ( Fixed )

• Right to Attend and Vote in • Net Assets of Corporation
Shareholder’s Meetings
• Right to Purchase Additional
Shares In Exchange of:
• Right to share in corporate profits • Voting Rights
• Right to share in the net assets of
the corporation upon liquidation
 Authorized Share Capital
• Represents the maximum number of subjects
fixed in the entity’s articles of incorporation
that can be subscribed and issued to
shareholders.
Divided in two parts
• Unissued share capital • Share Capital
• Represents the portion of the
• Represents the portion of
authorized share capital not
the authorized share capital
yet issued and is still
issued
available for subscription and
issuance
 Subscribed share capital
• Represent the portion of the authorized share
capital that is subscribed but is not yet issued
Par Value No-par Value
• One with peso value fixed in • One without par value fixed
the articles of corporation in the certificate of stock.
and certificate of stock Has a stated value
 Subscription
• Contract between the purchaser of shares and
the issuer in which the purchaser promises to
buy shares of the issuing company’s stocks
 Share Premium
• Arises from various sources which include the
following

Excess of subscription price over par value or

stated value

( Market Value over par value or stated value )

SHE-RECOGNITION