B-Ordinary Shares are a different class of Ordinary Share and are subject to the Articles of Association of the company concerned. They often pay higher dividends than Preference Shares. Holders of B-Ordinary Shares have fewer or no voting rights than Ordinary shareholders and may not have a right to any repayment of capital should the company be dissolved.
Who is this for?
B-Ordinary Shares are suitable for investors looking for a long-term investment. They are also suitable for investors who are willing to take higher risk to achieve a higher return.
- Dividends for B-Ordinary shareholders are not fixed and can be higher than dividends for Preference shareholders.
- Besides cash flow, shareholders can also obtain capital growth, for example by selling the Share at a price higher than the purchase price.
- Should the company cease to exist, the B-Ordinary shareholders may not be entitled to any repayment of capital.
- Holders of B-Ordinary Shares have fewer or no voting rights.
How to get it
To buy or sell B-Ordinary Shares, individuals will need to open a brokerage account with a JSE Equity member.