Ordinary Shares, also known as Common Stock, are shares that are fully paid and carry voting rights in corporate decision matters. These voting rights may be different from those of persons with preferred stock. Ordinary Shares come in rank after debentures and preference shares for dividend payments. As such, if an entity is closed for whatever reason, the ordinary shareholders rank as unsecured creditors right behind debenture holders who are secured creditors. Common stock is also referred to as common or ordinary shares and are the usual and commonly held form of stock in a company.
Members of the public are able to own shares in a corporation known as preferred stock. The Ordinary Shares, or Common Stock, that a corporation has re-purchased is referred to as as treasury stock and is available for a variety of company uses. In the order of priority in the liquidation of a corporation, the owners of common stock are almost last in line as dividends paid to the stockholders must be paid first to shareholders with preferred shares then to common stock shareholders.
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