ordinary shares

ordinary shares
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 terms.


ordinary shares
the shares issued to members of a limited company. These represent the equity or risk capital of a company; they carry no prior rights in terms of entitlement to dividend or return of capital on a winding up. Ordinary shares generally carry full voting rights. Different are preference shares, which entitle the holder to a stipulated fixed rate return in the form of a dividend (like the fixed rate return to which holders of loan stock are entitled) whereas the dividend declared in respect of the former is purely a matter for the directors and subject to approval by the shareholders in general meetings. In the event of a winding up, holders of preference shares are entitled to be paid before ordinary shareholders.

Collins dictionary of law. . 2001.


ordinary shares
The most common form of share. Holders usually have voting rights and receive dividends in line with the company's profitability and recommendation of its directors.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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Look at other dictionaries:

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  • 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 — 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

  • ordinary shares — noun (plural) technical the largest part of a company s capital 1 (2), which is owned by people who have the right to vote at meetings and to receive part of the company s profits …   Longman dictionary of contemporary English

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