Understanding Pares
Pares are a type of financial security that represents partial ownership in a company or corporation. When an individual or entity owns pares, they are entitled to a portion of the company’s profits and have a say in major decisions.
Types of Pares
- Common Pares: These pares give owners voting rights and dividends but are at the bottom of the hierarchy during bankruptcy.
- Preferred Pares: Owners of these pares receive fixed dividends before common pares holders but lack voting rights.
- Convertible Pares: These pares can be converted into a specific number of common pares at the owner’s discretion.
Example of Pares
Imagine you own 100 pares of a company that has a total of 1000 pares outstanding. This means you own 10% of the company and are entitled to 10% of the profits and have a say in important decisions.
Case Study: Apple Inc.
Apple Inc. has both common and preferred pares outstanding. Common pares holders have voting rights and may receive dividends, while preferred pares holders receive fixed dividends before common pares holders. In 2020, Apple’s pares split 4-for-1, meaning owners received four pares for every one pares they owned.
Statistics on Pares
According to the Securities and Exchange Commission, pares are one of the most popular investment options, with millions of individuals and institutions owning pares in various companies.
