ordinary shares

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Explanation of "Ordinary Shares"

Definition:
"Ordinary shares" are a type of stock that represents ownership in a company. When you own ordinary shares, you have the right to receive a part of the company's profits (called dividends) and also the ability to vote on important company decisions, like who will be on the board of directors. Ordinary shares are also known as common stock in some places.

Usage Instructions:

• When to use: You use the term "ordinary shares" when discussing stocks, investments, or corporate ownership.
• How to use: It often appears in financial contexts, company reports, and discussions about investing.

Example:

• "After researching different companies, Maria decided to invest in ordinary shares of a tech startup because she believed in its future growth."

Advanced Usage:

• In more advanced discussions, you might hear about the differences between ordinary shares and preferred shares. Preferred shares typically offer fixed dividends and have priority over ordinary shares in case of company liquidation, but they usually do not come with voting rights.

Word Variants:

• Common Stock: Another term for ordinary shares.
• Shareholder: A person or entity that owns ordinary shares in a company.

Different Meaning:

• In some contexts, "ordinary" can also mean normal or typical, but in finance, it specifically relates to this type of stock.

Synonyms:

• Common stock
• Equity shares

Idioms and Phrasal Verbs:

While "ordinary shares" does not have specific idioms or phrasal verbs associated with it, you might hear phrases like: - "Take a stake in" - This means to invest in ordinary shares of a company. - Example: "John decided to take a stake in a local business by purchasing ordinary shares."

Summary:

"Ordinary shares" are an important concept in finance and investing. They give you ownership in a company, the right to dividends, and the ability to vote on company matters.

Academic

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

Synonyms

• common stock
• common shares