Common shares represent ownership of a company. As owners, common shareholders normally have the right to elect directors and to vote on certain major corporate decisions. They are also entitled to share in any residual assets of the company if it is wound up.
2.Restricted Voting Shares
Restricted voting shares represent ownership, like common shares, but offer holders restricted or no voting privileges.
Preferred shares typically give holders the right to receive a fixed dividend before any dividends can be paid to the company's common shareholders. Preferred shareholders are also entitled to a portion of the residual assets of the company if it is wound up. Holders often do not have voting rights, but in many cases are offered special features such as the right to redeem their shares at certain times or convert them into common shares at a predetermined price.
Flow-through shares are a special type of common shares that may be issued by oil and gas companies or mineral exploration companies. These shares allow certain tax deductions for qualifying exploration, development and property expenditures to ‘flow through' from the company to shareholders.