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A DVR or Differential Voting Rights share is just like an ordinary equity share, but with voting fewer rights. For example, while a normal Tata Motors shareholder can vote as many times as the number of company shares he/she holds, those who hold DVR shares will need to hold 100 DVR shares to cast one vote. World over many famous companies such as Google, trade shares with different voting rights (DVR). In India it was Jagatjit Industries that was the first to do a DVR.

Companies issue DVR shares to prevention any hostile takeover and dilution of voting rights. This also helps strategic investors who are looking at a big investment in a company, but with fewer voting rights. Some of the companies who have issued DVRs, which are traded in NSE, include Tata Motors, Pantaloons, Jain Irrigation systems and Gujarat NRE Coke.


Is it suitable for retail investors to invest in DVR shares?

These are good instruments for long-term investors, typically small investors, who seek higher dividend and are not much interested in voting rights. Mostly, these shares trade at a discount to their corresponding equity shares and the discount rate ranges from 30-40%. If a retail investor decides to invest in a company's share based on the fundamentals, the same could be done in the company's DVRs.

The following reasons support investing in DVRs:

1. The discount factor - the company's share available at a lesser price for the same fundamentals. There is a chance of these discount being reduced, due to market forces. And this could provide some more appreciation, than the stock itself. 
2. There is a chance of higher dividend being given than the regualar equity shares.(For e.g, Tata motors declared a higher dividend for DVRs).

What are the disadvantages?

DVR shares are usually thinly traded, which means these are illiquid stocks. Also, during bearish phase of the markets, the discount could widen and this could be a dampener factor. But, caution should taken that an investor should not invest, just because the DVR is available at a large discount.

Other than the few disadvantages mentioned above, the DVRs are good instruments for medium to long-term investors, provided the fundamentals warrant in investing in the company. Over time as investors feel more familiar with such type of instruments, more issues would follow and maybe the discounts would narrow.

I absolutely loathe getting calls from private, unknown, or 1-800's numbers. Nothing ever good comes from these calls—bill collectors, scammers probing for my background, and exes. Typically I don't even answer my cell when these numbers come up, but for some strange reason, something felt particularly "wrong" when I received a 1-800 call a few weeks ago. My intuition was right.

"Hi yes," said the woman on the other end, "I'm calling from Chase Bank and we've noticed some unusual purchasing activity on your account." At first I thought it was a scam, some criminal trying to swindle me for my account number. "Did you spend $2,000 at Ralph Lauren and Bebe's clothing and apparel on May 1?" she continued. Of course I didn't spend nearly an entire pay check on two frou-frou luxury clothing stores that I don't even dare walking into because I know I can't afford anything in there. I took a moment to excuse myself as I logged in my bank account online. And that's when my heart sunk. Stolen from my account? A whopping $2,000. I was a victim of identity theft.

While Chase assured me that if I filled out the right paperwork I'd get "most" of my money put back into my account (and I did), in retrospect, there was so much I could of done to try and prevent such a "inconvenience" from happening –and I do mean inconvenience. I had bills to pay and a trip I was taking in just a few short weeks. It couldn't have occurred at a worse time. That said, below are some ways you can learn from my mistakes and help protect yourself from credit card identity theft.

 Shred all of your Bank Statements 

The easiest thing you can do is invest in a shredder and properly dispose of all of your paper bank statements and credit card/debit card receipts that you don’t need anymore. You'd be surprised to learn how much a "professional" can do with just your name and the last four digits of your credit card number. Some scammers intentionally dig through trash in order to retrieve this information, so don't make their jobs any easier by throwing your sensitive documents in the dumpster whole—especially public trash cans like those found in parks.

Only use "Secured" Sites when Making Purchases

Ensuring that the website you're browsing is "secured" when making online purchases is essential. Otherwise, your credit card information, including your EFC and your billing address could potentially be a free-for-all. There are several different ways that you can make sure the page you are viewing is secured. The first is to look at the address. A secured website will read https:// ; an unsecured site will read http:// – notice how the secured website has an "s"? Pay close attention to these details. Another indication that the website is secured is that there will be a visible locked padlock on the address bar as well, before the https://. Click on the pad lock to make sure its certificate of authenticity hasn't expired. Some scammers are smart enough to forge fake padlocks on their malicious sites.

Change Pins and Passwords Frequently

It might be a tad annoying having to remember new passwords to your accounts, online log-ins, and debit card every six months or so, but doing this can really help potential criminals from hacking into your information. Don't ever make an "obvious" pin or password either, such as the last four digits of your social security number, phone number or your name.

Set up Alerts 

Last but not least you want to set up alerts whenever money is taken out of your account to be sent to your phone. My bank was gracious enough to personally call me when my unfortunate circumstance happened (after all, my bank knew I never spent that much money at one time) but don't depend on your bank to give you a heads up. Always monitor your own account. This will help you catch unusual activity much more quickly which means the chances of you getting reimbursed are higher. This will also help you catch any discrepancies—perhaps a restaurant or hotel over charged you for something.

Criminals and hackers are smart. The smartest of the bunch may just very well find a way to your information despite your efforts. However, following the tips above can leave some sense of security that you're not handing over your information on a silver platter.

With knowledge of the best background check companies and tactics, Jane Smith provides vital information and tips throughout her blogs. Email her your thoughts or concerns at janesmith161 at gmail dot com.