Ordinary shares are any share issued by a company that are not preference shares and do not have any predetermined dividend amounts.
Ordinary shareholders are entitled to receive dividends if any are available after dividends on preference shares are paid. They are entitled to their share of the residual economic value of the company if the business is wound up. Ordinary shareholders are unsecured creditors and are the last in line after bondholders and preference shareholders for receiving proceeds.
| Activity 3.1
|Question to activity 3.1||Suggested answers to activity 3.1|