Deferred Dividend Shares
A class of shares that explicitly stipulates the deferral of dividend payments until another class of shares receives its share or after a specific obligation of the company is paid
Cash Shares
Shares whose value is paid by the shareholder in cash. Examples of these shares include company shares and commercial bank shares, which laws in some countries stipulate must be paid in cash and not in kind.
Cumulative Preferred Shares
A class of preferred shares characterized by the accumulation of unpaid dividends from any period, which are then paid in the future when possible. Dividend distributions on these shares have priority over distributions on common shares.
Speculative stocks
Stocks of companies that typically offer the potential for high and exceptional capital gains. Investing in this type of stock involves significant risk.
Growth Stocks
The term refers to stocks of small companies that have no prior earnings history. They are valued based on expected future earnings and thus have high profitability ratios. They grow at faster rates than similar companies in the same industry. These stocks are high-risk because capital gains come from speculation, especially in small companies with […]
In-kind shares
Shares whose value is collected in kind, such as machinery, buildings, and land. The nature of these contributions, how they are valued, and the shares issued in exchange are usually determined in accordance with the provisions of the Joint Stock Companies Law.
Cyclical Stocks
Stocks of companies that mirror overall economic performance, as their revenues and profits—and consequently their stock prices—rise when the economy is booming, and conversely, their revenues and profits—and consequently their stock prices—decline when the economy is slowing down or in recession.
Income stocks
Common shares of companies that tend to pay most of their net profits as cash dividends to their shareholders; for example, utilities companies.
Treasury Shares
Shares that the issuing company repurchases through the market under certain controls. The company may hold these shares, reissue them, or cancel them. It is worth noting that these shares are not considered part of the company’s capital and are not entitled to distributed dividends.
Bearer Shares
Shares for which the owner’s name is not recorded on the ownership certificate, akin to banknotes issued by the Saudi Arabian Monetary Authority. Consequently, the shareholder must safeguard the ownership certificate, as it constitutes the sole proof of ownership.