Types of Shares in Share Market Sri Lanka


Share Market Sri LankaIf we

Share Market Sri Lanka

consider on share market Sri Lanka or any other country Share is the most important thing is this market. The first step take to enter to share market Sri Lanka (Colombo Stock Exchange) is creating a Central Depository Systems (CDS) Account. Central Depository Systems (CDS) is the system which depository of the entire listed stocks and securities in share market Sri Lanka. In this article I will briefly explain what is share and type of shares available on this share market Sri Lanka. First we will check about what is CDS Account means.

CDS Account

If you think to enter to share market Sri Lanka (Colombo Stock Exchange) the first you need to do is start at Central Depository Systems (CDS) Account. You can start CDS account from any accredited stock broker in Sri Lanka. No fee will take to open this CDS account and you can start personal or joint account. CDS account number has the English Symbol word given by stock broker and you national Identity card number.

What is Share?

In ordinary we normally say share as a part of something. But if we consider about share in business world this is the smallest unit got the ownership of the company or organization. If you buy share from any company which means you became owner of that company and only matter is the quantity of share. No of shares which you own is higher means is the ownership of the company is also getting higher. I will explain this from an example. Think ABC company number of total ordinary share is ten million and you owed ten thousands of shares of that company, so you got 0.001 (1/1000) of ownership of that company. This is very simple and brief explanation on Share and next we will look about what are the types of shares available on share market Sri Lanka .

Type of Shares

There are various types of shares available on share market Sri Lanka such as Normal Shares (N), Non Voting shares (NV) and Preference Shares. I will explain this in brief as follows.

Normal Shares (N)

This is the most common type of shares available in Colombo Stock Exchange (CSE). In CSE “N” marked at the end of the Share Name is normally shows as Normal Shares .Apart from special occasions most of Normal shares in share market Sri Lanka first value is 10 rupees.

Non Voting Shares (NV)

This shares got the every benefits and ownership of the company except the voting right of the Annual General Meeting (AGM) of that company. Normal price of Non Voting Shares (NV) is 30-40 percent less than Normal shares.

Preference Shares

For Preference Shares got the allocated interest rate. If a company got bankrupted or close company under any circumstance Preference Shares will get the first pay. Preference shares got less risk compare to normal shares and non voting shares. But there are few preference shares at Colombo stock exchange.

Apart from this mentioned Major shares, there are so many other products also available on this market. I will explain the other type of investment products available on share market Sri Lanka in my future posts.