Ordinary Shares

This refers to the equity ownership in a company with an entitlement to vote on shareholder matters but with no preferential rights.

Ordinary Shares receive dividends if any remain after dividends on preferred shares are paid. They are also entitled to a share of the residual economic value of the company when it is closes down; however, they are last in line after bondholders and preferred shareholders for receiving business proceeds; as such they are considered as unsecured creditors.

Ordinary Shares is a term normally found in financial reporting and financial management.

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