Equity Investments - Equity Investments Section 1

Investors prefer to invest in putable common shares rather than callable common shares.

The issuing company is obligated to buy callable common shares at a predetermined price.

Putable common shares facilitate raising capital because of their appeal to investors over callable common shares.

They entitle shareholders to participate in additional dividends if the company’s profits exceed a predetermined level.

They entitle shareholders to participate in corporate decisions through voting rights.

They entitle shareholders to participate in additional distribution of the company’s assets upon liquidation.

to a share of the company’s operating performance.

to participate in decision making in the form of voting rights.

to fix dividend payments.

Preference shareholders generally receive predictable cash flows.

The dividends are usually variable like interest payments on debt securities.

Preference share dividends are tax deductible.