Ordinary shareholders are entitled to receive dividends if any are available after dividends on preferred shares are paid. They are also entitled to their share of the residual economic value of the company should the business unwind; however, they are last in line after bondholders and preferred shareholders for receiving business proceeds. As such, ordinary shareholders are considered unsecured creditors.
Also known as "common stock".
Ordinary shares include those traded privately as well as shares that trade on the various public stock exchanges. Ordinary shares have a stated "par value", but this value is more of a technicality, and will rarely be more than a few pennies per share. The true value of an ordinary share is based on the price obtained through market forces, the value of the underlying business and investor sentiment toward the company.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
ordinary shares — carry the residual economic value of a company. They carry rights to distribution of profits through dividends, to the surplus assets of a company on a winding up and to votes at general meetings of the company. Easyform Glossary of Law Terms. UK … Law dictionary
ordinary shares — n [plural] technical the largest part of a company s ↑capital, which is owned by people who have the right to vote at meetings and to receive part of the company s profits … Dictionary of contemporary English
ordinary shares — noun stock other than preferred stock; entitles the owner to a share of the corporation s profits and a share of the voting power in shareholder elections over 40 million Americans invest in common stocks • Syn: ↑common stock, ↑common shares •… … Useful english dictionary
ordinary shares — N PLURAL Ordinary shares are shares in a company that are owned by people who have a right to vote at the company s meetings and to receive part of the company s profits after the holders of preference shares have been paid. Compare preference… … English dictionary
ordinary shares — Apples mainly to international equities. shares of non U.S. companies traded in their individual home markets. Usually cannot be delivered in the U.S. Bloomberg Financial Dictionary See: ADR. Bloomberg Financial Dictionary See equity shares.… … Financial and business terms
ordinary shares — Also common shares Holders typically being entitled to vote and receive dividends. In the event of liquidation, holders of shares usually rank behind the entity s creditors and holders of preferred shares … Euroclear glossary
ordinary shares — UK / US noun [plural] business British the majority of the shares into which the capital of a company is divided. The people who own these shares have the right to a part of the company s profits … English dictionary
ordinary shares — Fin shares bought by investors in the United States in foreign companies that are traded on their home markets, as opposed to shares that trade in the United States … The ultimate business dictionary
ordinary shares — regular shares, regular stock … English contemporary dictionary
ordinary shares — / ɔ:d(ə)n(ə)ri ʃeəz/ plural noun normal shares in a company, which have no special benefits or restrictions (NOTE: The US term is common stock.) … Dictionary of banking and finance