Shares

Glossary

Banking

Shares

A share is the basic unit into which a company’s share capital (cf.) is divided. Share ownership represents ownership of a company. Ordinary shares come with voting rights and the right to receive dividends if these are paid. Voting rights confer power over key company decisions tabled at shareholders’ meetings. Preference shares or preferred stock typically have no voting rights but they do come with mandatory fixed-rate dividends (akin to bond coupons). Ordinary shares (a.k.a.common stock) have a par value but are sold to shareholders at a premium to their par value.

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