Also, now is the time to start considering New Year’s Resolutions. Is there a part of your financial life you’d like to devote time and energy to in 2011? For inspiration, read last year’s post on financial resolutions.

Happy holidays. I’ll be back in 2011.

When you own common shares you have the right to elect directors and to vote on certain major corporate decisions. You gain (or lose) money based on the company’s performance. Companies do not have to pay a dividend. Many larger, established companies try to pay regular dividends. Others may not pay a dividend because they are not profitable or they choose to reinvest their earnings.

Restricted voting shares are generally the same as common shares, but (as expected) the voting rights of the holder are restricted.

Preferred shareholders generally do not have voting rights, but may be offered special features such as the right to redeem their shares at certain times or to convert their shares to common shares at a certain price. Preferred shares pay a fixed dividend, though a company may reduce or suspend dividend payments if, for example, it does not earn enough profit or needs to preserve its capital.

In general, the prices of preferred shares tend to fluctuate less than those of common shares. However, the prices of preferred shares may fall if:

• the company plans to reduce or reduces dividends
• the rate of return of other investments increases, making preferred shares relatively less attractive

If a company dissolves, preferred shareholders have a right to receive up to the face value of their shares from the company’s remaining assets. They rank behind tax authorities, employees and creditors but ahead of common shareholders, who also have a right to a portion of the remaining assets.

This has been the eighth post in our Investments at a Glance Series. Next we examine flow-through shares, rights and warrants.

Between October 1, 2008 and December 31, 2008, John During entered nine buy orders in the account of his spouse for shares of Angoss Software Corp. All orders were entered within 30 minutes of market close, eight of them within the last minute. Seven of the nine orders established the closing bid price, only one order was filled, and all orders improved the bid price.

During did not profit from these trades, and he was not aware that what he was doing was illegal. However he admits to entering the orders for the purpose of artificially improving the bid price of the shares, and so he violated the Nova Scotia Securities Act.

The lesson: you don’t have to be a professional to be held accountable to securities laws. If you are going to trade in your own account, you need to follow the rules, or face the consequences.

Under today’s order and settlement agreement, During will pay an administrative penalty of $2,500 and $1,000 in costs connected with the investigation and proceedings. He is prohibited from trading securities for two years, except through a representative registered with the Commission.

It is important for anyone trading on their own behalf to be aware that they must abide by the same rules as professional traders. Ensure that you are aware of the rules in your jurisdiction. You may also want to consider taking an investing course, such as the Canadian Securities Course – a small investment for some valuable knowledge.

As with any investment, if you are approached about an investment opportunity in real estate, it is important to look carefully and understand what is being offered. Are you buying property, or are you investing in a security?

If real estate is bought for a set price and ownership is on a set date, that is likely a real estate transaction and you have bought the property. If the seller continues to own the property and only sells an interest, then it might be a security.

Some homeowners, particularly seniors, may be attracted to reverse mortgages, to fund real estate or other investing. While these are a legitimate lending option, the resulting lump sum home equity payment makes users an attractive target for unscrupulous salespeople, who may attempt to direct this money into worthless or unsuitable investment products.