How Do You Spell ORDINARY SHARES?
Pronunciation: [ˈɔːdɪnəɹi ʃˈe͡əz] (IPA) 
Pronunciation: [ˈɔːdɪnəɹi ʃˈe͡əz] (IPA)
Ordinary shares, also referred to as common shares or equity shares, are a type of ownership interest that represents the basic form of ownership in a company. They are typically issued by companies and held by shareholders, who are the owners of the company.
Ordinary shares confer several rights and benefits to their holders. Firstly, shareholders have the right to vote on important company matters, such as the appointment of directors or changes to the company's articles of association. The voting power is generally proportional to the number of ordinary shares held by the shareholder.
Furthermore, ordinary shareholders have the potential to receive dividends, which are the company's profits distributed to shareholders on a per-share basis. Dividends are usually paid out after the payment of any preferred dividends, which are prioritized over ordinary dividends.
In the event of liquidation or winding up of the company, ordinary shareholders have the right to the remaining assets and funds after all debts and obligations have been settled. However, they rank after creditors and owners of preferred shares in the distribution of assets.
Unlike preferred shares, ordinary shares do not have any specific or preferential rights attached to them. These shares have variable dividend payments and no fixed rate of return, making them more susceptible to market fluctuations. Therefore, ordinary shareholders primarily benefit from the capital appreciation of the company's shares and the potential for long-term value creation.
Overall, ordinary shares represent a form of ownership in a company, accompanied by voting rights, potential dividends, and a claim on the remaining assets in case of liquidation.
The term "ordinary shares" has its etymology rooted in the field of finance and corporate law.
The word "ordinary" is derived from the Latin word "ordinarius", meaning "regular" or "common". In this context, "ordinary shares" refer to the common type of shares that are typically issued by companies. These shares represent ownership and are commonly held by the general public and institutional investors.
The term "shares" originated from the Old English word "scearu", which translates to "a part" or "a portion". In the context of finance, shares are units of ownership in a company or corporation.
Combining these etymological origins, "ordinary shares" describes the common and regular type of ownership units that individuals can hold in a company.
