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.

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