Definition

Noun: - A type of equity security representing ownership in a corporation: Ordinary shares, also commonly called common stock, provide holders with a residual claim on the company's assets and earnings. They typically entitle the owner to vote on corporate matters and receive dividends, but these dividends are not fixed or guaranteed and are paid only after obligations to preferred shareholders and debt holders are met.

Examples of Usage

• Noun:
  • The company issued new ordinary shares to raise capital for expansion.
  • As a holder of ordinary shares, she has the right to vote at the annual general meeting.
  • The return on ordinary shares depends on the company's profitability and share price performance.

Advanced Usage

• "To hold ordinary shares": To be an owner of this class of stock in a company.
  • Many long-term investors prefer to hold ordinary shares for their growth potential.
• "Voting ordinary shares": A specific class of ordinary shares that carries voting rights, distinguishing them from non-voting shares a company might issue.
  • The founder retained control through his ownership of all the voting ordinary shares.

Variants and Related Words

• Common stock (n): The most frequent synonym for ordinary shares, especially in American English.
  • The financial report listed earnings per share of common stock.
• Equity (n): A broader term for ownership interest in a company, which includes the value represented by ordinary shares.
  • The startup's equity was divided among the founders and early investors.

Synonyms

• Common shares: Another direct synonym for ordinary shares.
• Voting shares: Highlights the key right often associated with ordinary shares, though some classes may have limited or no votes.

Related Phrases

• "To trade ordinary shares": To buy and sell this type of stock on an exchange.
  • Ordinary shares of the company trade on the London Stock Exchange.
• "Rights issue for ordinary shares": An offer to existing shareholders to buy additional new shares, usually at a discount.
  • The board approved a rights issue to give current holders of ordinary shares the first opportunity to invest more.

Noun

1. stock other than preferred stock; entitles the owner to a share of the corporation's profits and a share of the voting power in shareholder elections
   • over 40 million Americans invest in common stocks