Common Stock

The common share is a type of financial instrument issued by a public company that aims to raise funds from the public for utilizing in their business operations and expansion. Common shareholders are the owners of the companies by their holding proportion to their holdings and have the right to vote at each agenda during the shareholders' meeting and also be able to share idea on the business operation of the company. Common shareholders will receive a return as dividends which derived from net profit of company.

  • Benefits of investment in common share
    Dividend

    Investors will receive returns from investing in common shares in the form of dividends which depending on the Company's performance over the period (profit of the Company). In generally, the dividend policy is to pay not than 50% of annual net profit after all relate legal reserves are met. And income tax is not charged to the shareholders for the dividend received

    Capital Gain

    Investors will receive returns from investing in common shares in the form of dividends which depending on the Company's performance over the period (profit of the Company). In generally, the dividend policy is to pay not than 50% of annual net profit after all relate legal reserves are met. And income tax is not charged to the shareholders for the dividend received

    Participate as business owner

    Investors will receive returns from investing in common shares in the form of dividends which depending on the Company's performance over the period (profit of the Company). In generally, the dividend policy is to pay not than 50% of annual net profit after all relate legal reserves are met. And income tax is not charged to the shareholders for the dividend received

    Purchase additional share

    Investors will receive returns from investing in common shares in the form of dividends which depending on the Company's performance over the period (profit of the Company). In generally, the dividend policy is to pay not than 50% of annual net profit after all relate legal reserves are met. And income tax is not charged to the shareholders for the dividend received

Major Differences between Common Stock and Bond

Basics for comparison

Common Stock

Bond

Government Bond

Corporate Bond

Instrument type

Equity

Debt

Debt

Owners

Shareholders

Bondholders

Bondholders

Issue by

Companies

Government

Companies

Return

Dividend

Interest

Interest

Claiming priority

Low

Hight

Hight

Voting right

Yes

No

No

Risk

High

Low

Low

Returned guarantee

No

Yes

Yes

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