DVR shares are a class of equity that deviates from the norm in terms of voting rights. Unlike their ordinary share counterparts, DVR shares imbue shareholders with voting power that can be either amplified or diminished. The specific allotment of voting rights hinges upon the terms established by the company during the issuance of these shares.
Ordinary shares, or equity shares, are the most common type of stock issued by a company. When you buy ordinary shares, you’re essentially purchasing a piece of ownership in the company. This ownership comes with certain rights and potential rewards, but also some risks.
Think of preference shares as a special class of stock that grants investors certain privileges over common stockholders. The key benefit lies in dividends. Preference shareholders have the right to receive dividend payouts before any dividends are distributed to common shareholders. These dividends are typically fixed, meaning they represent a set percentage of the face value of the share.