N-Ordinary Shares are the same as Ordinary Shares, except that they give shareholders minimal or zero voting rights. N-Ordinary Shares often trade at a discount to Ordinary Shares. Although they are likely to cost less, they pay out the same dividends as Ordinary Shares.
Who is this for?
N-Ordinary Shares appeal to investors who are not concerned with voting rights and are looking for dividend income.
- Although they are likely to cost less, they pay out the same dividends as Ordinary Shares.
- Dividends for N-Ordinary shareholders are not fixed and can be higher than dividends for Preference shareholders.
- N-Ordinary Shares offer all the benefits of share investing including the potential for both capital and income growth.
- Generally one would sell N-Ordinary Shares for more money than you paid for them.
- With N-Ordinary Shares, investors are not able to vote on decisions that could potentially impact the company and therefore their investment.
- Like all Share investing, investing in N-Ordinary Shares carries the risk of losing your initial investment or making a lower-than-expected return.
- Share prices can rise and fall and investors must accept the fact that the value of their Shares may fluctuate during the year.
How to get N-Ordinary Shares
Open a brokerage account with a JSE Equity Market member.