Define: Ordinary Shares

UK Accounting Glossary

Definition: Ordinary Shares


Quick Summary of Ordinary Shares


Shares in a company which entitle the holder to a share of the dividend declared and a share in net assets on closing down the business.



What is the dictionary definition of Ordinary Shares?

Dictionary Definition


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.


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Examples of Ordinary Shares in a sentence


Ordinary shares represent ownership in a limited liability company.

Upon winding-up, they are entitled to two thirds of the balance of the company’s assets after £1 million has been distributed to the owners of ordinary shares.

These shares offer dividends like ordinary shares but unfortunately don’t allow their holders either voting power or representation.


Synonyms For Ordinary Shares


ordinary share, common share, common stock, equity shares, common shares


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Ordinary Shares. PayrollHeaven.com. Retrieved February 17, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/ordinary-shares/

Definition Sources


Definitions for Ordinary Shares are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • BusinessDictionary.com
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd December 2018.