Share

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Shareholder value - companies.

An ordinary share in a company is a proportionate ownership right in the company.


Its main features normally include:

- A right to a proportion of any residual assets of the company on a liquidation.

- A right to receive any dividends declared.

- A right to vote in general meetings of the company.

- An obligation to subscribe equity capital of a fixed amount per share.


This type of share is also known as common stock, or an equity share.


All shares that are not equity shares are known as non-equity shares.

Non-equity shares include preference shares.


Historically, shares were evidenced by paper certificates.

More commonly, they are now recorded in electronic form.


See also