The Smart Investor

[Small Time Tina]

Common Shares.

Represent ownership of a company. Shareholders have the right to elect directors; to vote on certain corporate matters; and to share in any residual assets of the company if it is wound up.

May take the form of dividends or capital gains/losses. Many companies try to pay dividends regularly. Others may not pay dividends at all. Often, return will depend mainly on changes in share price, which can go up or down, sometimes dramatically.

Moderate to Very High. Based on company profitability, financial stability, management capabilities, exposure to economic slumps, foreign exchange, and competition. Common shareholders are last to claim assets in cases of insolvency.