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Investors gain ownership in a company when buying shares, which entitles them to vote in proportion to percentage ownership. Shareholders are entitled to dividends (after preference shares dividends and bondholders’ interest is paid) as well as residual economic value should the company unwind (after bondholders and preference shareholders are paid).
Benefits
- Ordinary shareholders have the right to vote at Annual General Meetings
- Ordinary shareholders have the ability to elect the Board of Directors of a company
- Ordinary shareholders dividends can be higher than preference shareholders dividends as dividends for ordinary shares are not fixed.
Who should use this product?
- Investors who are looking for a long term investment
- Investors with a high appetite for risk - willing to take the higher risk to achieve the higher return
- Investors who have time to analyse the financial performance of a company (e.g. assess financial statements)
- Investors who want to have a say in the running of a company
How to use this product?
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Learn more about Ordinary Shares |
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