Module I·Article I·~1 min read
Equity
Basic Financial Instruments
Turn this article into a podcast
Pick voices, format, length — AI generates the audio
Equity (Common stock / Ordinary shares) are common shares that grant voting rights and entitle the holder to dividends and assets after creditors.
Preferred stock / Preference shares are preferred shares with a guaranteed fixed dividend, but without voting rights.
Voting vs non-voting shares: shares with voting rights at meetings vs those without such rights (cheaper, but with no influence).
ADR (American Depositary Receipt) is an American depositary receipt for a foreign share (for example, Yandex in the USA).
GDR (Global Depositary Receipt) is the global version of an ADR, traded on global exchanges.
Stock options: the right to buy a share in the future at a fixed price (often used as compensation in startups).
RSU (Restricted Stock Units): a promise to grant shares after N years, provided you remain at the company.
ESOP (Employee Stock Ownership Plan): a program where employees own a stake in the company.
Warrants: the right to buy a share (similar to an option, but issued by the company, usually for a longer period).
Convertible securities: a bond or a preferred share convertible into a common share.
§ Act · what next