What are Ordinary Shares?
Ordinary Shares (also called equity shares or common stocks or common shares) are the most common form of shares in the stock market. They give the shareholder the right to vote on matters of corporate policy and the composition of the members of the board of directors.
Ordinary shareholders can vote at a general meeting on important company issues, such as the appointment of directors and auditors. However, ordinary shares are one of the riskiest form of investments as there may be no dividends payable or the market value of shares can fall after they have been bought.
* Featured Articles:
Five Important Features of Ordinary Shares
Ordinary shareholders have limited liability, in other words, their liability is limited to the shares invested. They cannot be forced to pay anything out of their own money in the event of liquidation...
Common Stock vs Preferred Stock
Stocks are issued when the company borrows funds from the public. In the financial market there are two types of stocks offered for sale: common stocks and preferred stocks...
Understand Equity Market - Common Stocks
Common stockholders have the right to control the company through their votes. They have the right to elect board of directors...
Ordinary shareholders can vote at a general meeting on important company issues, such as the appointment of directors and auditors. However, ordinary shares are one of the riskiest form of investments as there may be no dividends payable or the market value of shares can fall after they have been bought.
* Featured Articles:
Five Important Features of Ordinary Shares
Ordinary shareholders have limited liability, in other words, their liability is limited to the shares invested. They cannot be forced to pay anything out of their own money in the event of liquidation...
Common Stock vs Preferred Stock
Stocks are issued when the company borrows funds from the public. In the financial market there are two types of stocks offered for sale: common stocks and preferred stocks...
Understand Equity Market - Common Stocks
Common stockholders have the right to control the company through their votes. They have the right to elect board of directors...