Dictionary
Financial Glossary
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> "Ordinary shares" Definition |
 Ordinary shares
The most common form of share. Holders may receive dividends in line with the company’s profitability and recommendation of its directors.
Mainly applies to international equities. Shares of non-U.S. companies traded in their individual home markets. Usually cannot be delivered in the U.S. See: A.D.R.
Companies are incorporated with an authorised share capital - for instance 1,000 ordinary £1 shares. They do not have to issue all the authorised shares, but can issue as many as they like up to the authorised number.Once issued the shares can be traded either privately or on an exchange if the company has listed them. The price at which they trade will have nothing to do with the par value, but will be determined by market forces. Broadly speaking, if there are more willing buyers than sellers, the price will rise; if there are more sellers than buyers, it will fall.Shares usually come with a right to vote at the company"s Annual General Meeting, and an entitlement to a share of dividends declared. They are, however, unsecured. This means that shareholders are last in the queue if a company goes bust and has to sell off its assets. If the amount realised is enough to pay off all creditors, the shareholders may salvage something. If it isn"t, the shares will be worthless.
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Glossary 
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Dictionary
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Ordinary shares - The most common form of share. Holders may receive dividends in line with the company’s profitability and recommendation of its directors.
Mainly applies to international equities. Shares of non-U.S. companies traded in their individual home markets. Usually cannot be delivered in the U.S. See: A.D.R.
Companies are incorporated with an authorised share capital - for instance 1,000 ordinary £1 shares. They do not have to issue all the authorised shares, but can issue as many as they like up to the authorised number.Once issued the shares can be traded either privately or on an exchange if the company has listed them. The price at which they trade will have nothing to do with the par value, but will be determined by market forces. Broadly speaking, if there are more willing buyers than sellers, the price will rise; if there are more sellers than buyers, it will fall.Shares usually come with a right to vote at the company"s Annual General Meeting, and an entitlement to a share of dividends declared. They are, however, unsecured. This means that shareholders are last in the queue if a company goes bust and has to sell off its assets. If the amount realised is enough to pay off all creditors, the shareholders may salvage something. If it isn"t, the shares will be worthless.
Ordinary shares : the most common form of share. holders may receive dividends in line with the company’s profitability and recommendation of its directors.
mainly applies to international equities. shares of non-u.s. companies traded in their individual home markets. usually cannot be delivered in the u.s. see: a.d.r.
companies are incorporated with an authorised share capital - for instance 1,000 ordinary £1 shares. they do not have to issue all the authorised shares, but can issue as many as they like up to the authorised number.once issued the shares can be traded either privately or on an exchange if the company has listed them. the price at which they trade will have nothing to do with the par value, but will be determined by market forces. broadly speaking, if there are more willing buyers than sellers, the price will rise; if there are more sellers than buyers, it will fall.shares usually come with a right to vote at the company"s annual general meeting, and an entitlement to a share of dividends declared. they are, however, unsecured. this means that shareholders are last in the queue if a company goes bust and has to sell off its assets. if the amount realised is enough to pay off all creditors, the shareholders may salvage something. if it isn"t, the shares will be worthless.
