Ordinary shares and Over trading: Difference between pages

Revision as of 17:27, 3 March 2019

Over trading is a description applied to a business which has a deficit of working capital.

It often results from a rapid expansion in sales to the detriment of liquidity.

Sometimes written as 'overtrading'.

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-Units of equity which have no special rights or powers.  Similar to common stock.
+Over trading is a description applied to a business which has a deficit of working capital.
-By far the most common form of equity shareholding.
+It often results from a rapid expansion in sales to the detriment of liquidity.
+Sometimes written as 'overtrading'.
-Ordinary shares are the last to be paid out in a liquidation.
-Normal rights include the right to receive a dividend and to vote at meetings.
 == See also ==
-* [[Common stock]]
+* [[Cash flow insolvent]]
-* [[Equity]]
+* [[Liquidity]]
-* [[Preference shares]]
+* [[Working capital]]
-* [[Warrant]]