Ordinary Shares

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Dictionary Says

Definition of 'Ordinary Shares'

Any shares that are not preferred shares and do not have any predetermined dividend amounts.  An ordinary share represents equity ownership in a company and entitles the owner to a vote in matters put before shareholders in proportion to their percentage ownership in the company.  

Ordinary shareholders are entitled to receive dividends if any are available after dividends on preferred shares are paid.  They are also entitled to their share of the residual economic value of the company should the business unwind; however, they are last in line after bondholders and preferred shareholders for receiving business proceeds. As such, ordinary shareholders are considered unsecured creditors.

Also known as "common stock".
Investopedia Says

Investopedia explains 'Ordinary Shares'

Ordinary shares include those traded privately as well as shares that trade on the various public stock exchanges. Ordinary shares have a stated "par value", but this value is more of a technicality, and will rarely be more than a few pennies per share. The true value of an ordinary share is based on the price obtained through market forces, the value of the underlying business and investor sentiment toward the company.
Search results for

'Ordinary Shares'

  • Why are big foreign companies considering delisting their American ...

    http://www.investopedia.com/ask/answers/06/ADRdelisting.asp
    ... trading volumes. These firms also found that US residents owned primarily
    ordinary shares within the company, rather than ADRs. When a ...

  • Series 26 Study Guide - Mutual Fund Accounts - Selling Mutual Fund ...

    http://www.investopedia.com/exam-guide/series-26/mutual-fund-accounts/mutual-fund-shares.asp
    ... gains, followed by the $3,000 deduction against ordinary income. Exchanges There
    are a number of occasions that may result in an investor moving shares of one ...

  • IPO Lock-Ups Stop Insider Selling

    http://www.investopedia.com/articles/stocks/07/ipo_lockup.asp
    ... April 12 2007 | Filed Under ยป IPOs, Short Selling, Stocks, Venture Capital. When
    companies "go public", the number of shares offered in the initial public ...

  • An Introduction To Depositary Receipts

    http://www.investopedia.com/articles/03/091003.asp
    ... The ADR investor holds privileges like those granted to shareholders of
    ordinary shares, such as voting rights and cash dividends. ...

  • Buffett Defends These Stocks As Undervalued

    http://stocks.investopedia.com/stock-analysis/2011/Buffett-Defends-These-Stocks-As-Undervalued-SNY-WFC-USB-KFT0401.aspx
    ... $83 to $90 a share, which is well below the current $70 share price today (accounting
    for the two to one relationship between SNY ADRs and ordinary shares). ...

  • Understanding Rights Issues

    http://www.investopedia.com/articles/stocks/05/062905.asp
    ... But until the date at which the new shares can be purchased, shareholders may trade
    the rights on the market the same way they would trade ordinary shares. ...

  • The Two Sides Of Dual-Class Shares

    http://www.investopedia.com/articles/fundamental/04/092204.asp
    ... Each of the Class B shares reserved for Google insiders would carry 10 votes, while
    ordinary Class A shares sold to the public would get just one vote. ...

  • Investing Beyond Your Borders

    http://www.investopedia.com/articles/stocks/04/121404.asp
    ... Listed on the New York Stock Exchange and Nasdaq, they can be traded, settled
    and held as if they were ordinary shares of US-based companies. ...

  • Capital Gains Tax 101

    http://www.investopedia.com/articles/00/102300.asp
    ... Sold 100 shares @ $50, $5,000. ... the stock for less than one year (made a short-term
    capital gain), your profit would have been taxed at your ordinary income tax ...

  • Food Plays: Go To The Source

    http://stocks.investopedia.com/stock-analysis/2009/Food-Plays-Go-To-The-Source-CRESY-IRSA-KR-WINN0921.aspx
    ... in the world. Shares at $13 per ADS, represents a market value of $624 million
    (1 ADS = 10 ordinary shares). Stated book value, once ...

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