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A Dictionary of Business and Management | 2006 | © A Dictionary of Business and Management 2006, originally published by Oxford University Press 2006. (Hide copyright information) Copyright

ordinary share A fixed unit of the share capital of a company. Shares in publicly owned quoted companies (see plc; quotation) are usually traded on stock exchanges and represent one of the most important types of security for investors. Shares yield dividends, representing a proportion of the profits of a company (compare fixed-interest security; preference share). In the long term, ordinary shares, by means of capital growth, yield higher rewards, on average, than most alternative forms of securities, which compensates for the greater element of risk they entail. See also convertible; growth stocks.

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