How the stock market works

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15. Shareholder perks

Some companies encourage private investors to own their shares by offering shareholder perks. Cheap restaurant meals, discounts on cross-channel ferry crossings, cut-price seats at sporting events can all be had as long as you are on the share register.

However:

• It is not a good idea to buy shares just because of the associated perks.
• You usually need a minimum holding to qualify for the perk. A single share will not usually do the trick.
• You need to check the conditions carefully. Some perks are only available to a certain class of share, or at certain times of year.

1. Why do companies list on the Stock Exchange? 2. Offers for sale 3. Offers by tender, and other methods of admission 4. The Official List 5. AIM and OFEX 6. Different types of share 7. Reasons for market indices 8. The FTSE indices 9. Sectors 10. Scrip issues 11. Rights issues 12. Convertibles 13. Warrants 14. Share buybacks 15. Shareholder perks 16. Suspension 17. Insolvency 18. Conclusion