Characteristics of Common Shares

In the context of equity investments, companies can issue various types of shares to raise capital. Common shares, which represent ownership in a company, often come with voting rights and the potential for dividends. However, the value and rights attached to common shares can differ significantly based on the structure of the company's equity and the presence of various classes of shares.

Investors need to understand the implications of different share classes, as some classes may not offer the same voting power or dividend priority. Additionally, the liquidity of common shares can vary in different market conditions. Given this context, consider the following statements regarding common shares: