Ordinary Shares

The Ordinary Share is the most common form of share - this is the risk capital of the company.

Ordinary shares are also known as equity capital. In the U.S. such shares are referred to as common stock.

Holders receive dividends which vary in amount in accordance with the profitability of the company and recommendations of directors.

The holders are the owners of the company and have the right to vote in a general meeting and to elect and dismiss directors. Ordinary shares also come with obligations - this is the risk bit, if the company goes bust, the shareholder loses his/her money.