How Do You Spell ORDINARY SHARE?
Pronunciation: [ˈɔːdɪnəɹi ʃˈe͡ə] (IPA) 
Pronunciation: [ˈɔːdɪnəɹi ʃˈe͡ə] (IPA)
An ordinary share, also known as a common share or common stock, is a type of ownership interest or equity investment in a company. It represents the basic form of shareholding in a corporation and provides certain rights and privileges to its holders.
Ordinary shares typically carry voting rights, which grant shareholders the ability to participate and have a say in the company's decision-making processes, such as electing the board of directors and approving major corporate actions. Additionally, they often entitle shareholders to a proportional share in the company's profits through dividends, should the company generate profits and declare them. However, dividends are not guaranteed and can vary depending on the company's financial performance and management decisions.
In terms of risk and reward, ordinary shares rank lower than other forms of securities like preferred shares or bonds. In the event of liquidation or bankruptcy, ordinary shareholders have the lowest priority, meaning they are the last to receive any proceeds after satisfying the claims of creditors and preferred shareholders. Conversely, ordinary shareholders benefit most when the company performs well, as the value of their shares can appreciate, offering potential capital gains.
Investors looking to invest in a company and become partial owners can purchase ordinary shares through various means, such as a stock exchange or directly from the company itself during initial public offerings (IPOs) or subsequent equity offerings. It is important for investors to perform thorough research and analysis, including examining the company's financial statements, before investing in ordinary shares to ensure informed investment decisions.
The term "ordinary share" originates from the field of finance and investment, particularly in relation to company ownership and stocks. The word "ordinary" in this context simply means common or standard, while "share" refers to a unit of ownership in a company.
The etymology of "ordinary" can be traced back to the Latin word "ordinarius", which means regular or usual. It entered the English language via Middle English and has been used since the 15th century to describe something that is commonplace or normal.
In the realm of finance, "ordinary shares" are also known as "common shares" or "common stock", indicating that they are the most basic type of ownership in a company. Ordinary shares typically represent the proportionate ownership rights, control, and entitlement to profits and dividends in a company. The term "ordinary share" is commonly used in British English, while "common share" is more prevalent in American English.
