Definition, Meaning & Synonyms
ordinary shares
Noun
/ˈɔːrdəneri ʃɛrz/
Definition
Ordinary shares are types of equity securities that represent ownership in a company. Holders of ordinary shares are entitled to vote on corporate matters and may receive dividends if declared by the company’s board of directors.
Examples
- Investors prefer ordinary shares for their potential to appreciate in value over time.
- When the company announced a dividend, ordinary shareholders rejoiced as their investments would yield returns.
- Owning ordinary shares means you can vote on key decisions at company meetings.
Meaning
Ordinary shares are the most common form of ownership in a corporation, allowing shareholders to participate in the financial performance and decision-making processes of the company.
Synonyms
- Equity shares
- Common stocks
