Ordinary Shares (Noun)
Meaning
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".
Classification
Nouns denoting possession and transfer of possession.
Examples
- Investors can purchase ordinary shares in a company, giving them a stake in its future profits.
- Ordinary shares often come with voting rights, allowing shareholders to participate in major corporate decisions.
- The company's ordinary shares are listed on the stock exchange for public trading.
- Purchasing ordinary shares can provide individuals with a sense of ownership in the company.
- Unlike preferred shares, ordinary shares do not offer a guaranteed dividend payment to investors.