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Ordinary Shares

Ordinary Shares Definition

Ordinary Shares represent equity ownership in a corporation and entitle the owner to vote in matters of the company and to receive dividends. Number of votes and the amount of dividend depends on the percentage ownership in the company. Ordinary shares are any shares that are not preferred shares and do not have any predetermined dividend amounts.


Additional meaning of Ordinary Shares:

Owners of ordinary shares receive dividends only after dividends on preferred shares are paid. Ordinary shareholders are considered unsecured creditors, because they are the last in line for receiving any money from the business.






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