Thread by @Finology_Quest

Have you ever heard of DVR shares?
- A small thread (1/7)
#Sensex #OmicronVariant

Did you know?

There are 2 types of shares of Tata motors that trade on Indian stock market (2/7)

#Omicron

But why does a company issue 2 variety stocks?

Well…DVR refers to Differential Voting Rights, meaning generally, these shares have low voting rights. (3/7)

#StockMarket

So, whenever you buy a stock, you become a part-owner of the company and could use your voting rights for decision making.

Generally 1 ordinary share = 1 vote
But, in case of DVR, 10 or 20 shares = 1 vote

(4/7)

#stocks

And another major difference is that the holders of DVR shares receive a higher dividend than ordinary shareholders.

Eg, Tata motors DVR shareholders are entitled to an additional 5% dividend than ordinary shareholders. (5/7)

#Shares

Why do companies issue DVR shares?

Because it helps companies in raising equity capital without affecting its management and control. (6/7)

#StocksToBuy

Berkshire Hathaway also have 2 classes of share: Class A & Class B.

There are 5 companies in India that have DVR shares:
- Tata Motors
- Gujarat NRE
- Jain Irrigation
- Future Enterprises
- Pantaloons India

(7/7)

#sharemarket #StockMarket