Start-up companies often hope to attract employees and investors by offering them shares of the company. There are several different types of shares, but the two most important are preference and ordinary shares. Founders and employees typically receive ordinary shares. Investors usually receive preference shares.

a) Based on that statement, explain THREE (3) differences between ordinary and preference shares?

b) Making money from dividends is one of the basic foundations of good investing. Too often, new investors don't fully know what dividends are, how dividends work, and how you can make money by investing in dividend shares. Based on that statement, explain the TWO (2) assumptions on the patterns of future dividend.

c) Briefly explain the following terms with an illustration.

1. Dividend
2. Capital gain