There are three types of market share. Describe each one. In your opinion, which one would be more beneficial for a health care organization to use to measure their performance in market share? Provide detail with examples.
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The three types of market shares are preferred shares, common shares, and mutual fund shares. The first type of market share is the common shares. This is a fractional or part ownership in which the owner undertakes the most risk associated with the business (1). This is also called the common stock and is high reward, high-risk, and high-reward investment. When a company goes into liquidation the common stock owners receive cash from assets after preferred shareholders and bondholders have been paid. The market value of common stock is also affected by the general market conditions. For example, when the stock markets are booming, the value of the common stock increases.
The second type of market share is the preferred share or the preference share. The preferred share entitles the holders to a fixed dividend which is paid before the ordinary share dividends are paid(2). These have a senior asset claim which is higher than that of common shares. If the company goes into liquidation, the preferred shareholders are paid before common shareholders from the proceeds of asset liquidation (3). If dividends are missed, these accumulate and the accumulated dividends are paid out before common shareholder gets any dividends.
The third type of market share is mutual fund shares. Mutual fund shares are those that are made up of funds collected from several investors for investing in securities such as common stock, preferred shares, and bonds. Mutual funds are collections of stocks or bonds. Each investor owns shares which represent a part of the holdings of the fund. One mutual fund share carries rights over a larger ...
The answer to this problem explains three types of market shares and the one appropriate to measure the performance of a healthcare organization. The references related to the answer are also included.