{"id":7122,"date":"2025-06-26T12:29:15","date_gmt":"2025-06-26T12:29:15","guid":{"rendered":"https:\/\/lemonn.co.in\/blog\/?post_type=glossary&#038;p=7122"},"modified":"2025-06-26T12:29:26","modified_gmt":"2025-06-26T12:29:26","slug":"ordinary-shares","status":"publish","type":"glossary","link":"https:\/\/lemonn.co.in\/blog\/glossary\/ordinary-shares\/","title":{"rendered":"Ordinary Shares"},"content":{"rendered":"<p><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/ordinary-shares\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Ordinary shares<\/a>, also known as <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity-shares\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">equity shares<\/a>, are the most common type of <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shares\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>shares<\/a> that companies issue. If you&rsquo;ve ever invested in the stock market, chances are you&rsquo;ve bought ordinary shares. Let&rsquo;s understand what they are in simple, everyday language.<\/p>\n\n\n\n<h2 id=\"what-are-ordinary-shares\" class=\"wp-block-heading\">What Are Ordinary Shares?<\/h2>\n\n\n\n<p>Ordinary shares represent ownership in a company. When you buy an ordinary share, you become a part-owner of the business. This means you share in the company&#x2019;s profits&#x2014;and losses.<\/p>\n\n\n\n<p>You also get the right to vote on important decisions, like choosing directors or approving mergers.<\/p>\n\n\n\n<h2 id=\"key-features-of-ordinary-shares\" class=\"wp-block-heading\">Key Features of Ordinary Shares<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Voting Rights<\/strong>:\n<ul class=\"wp-block-list\">\n<li>Each ordinary share usually gives you one vote.<\/li>\n\n\n\n<li>You can vote at the company&#x2019;s annual general meetings (AGMs).<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dividend\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Dividend<\/a>s<\/strong>:\n<ul class=\"wp-block-list\">\n<li>You may receive a part of the company&#x2019;s profits as dividends.<\/li>\n\n\n\n<li>These are not guaranteed and depend on how well the company performs.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Capital Growth<\/strong>:\n<ul class=\"wp-block-list\">\n<li>If the company grows and becomes more valuable, the price of your shares may rise.<\/li>\n\n\n\n<li>You can sell your shares at a higher price to make a profit.<\/li>\n<\/ul>\n<\/li>\n\n\n\n<li><strong>Last in Line<\/strong>:\n<ul class=\"wp-block-list\">\n<li>In case the company shuts down, ordinary <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/shareholders\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">shareholders<\/a> are paid last&#x2014;after all debts and other obligations are cleared.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n\n\n\n<h2 id=\"ordinary-shares-vs-dvr-shares\" class=\"wp-block-heading\">Ordinary Shares vs. <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/dvr\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>DVR<\/a> Shares<\/h2>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th>Feature<\/th><th>Ordinary Shares<\/th><th>DVR Shares<\/th><\/tr><\/thead><tbody><tr><td>Voting Rights<\/td><td>Full (1 vote per share)<\/td><td>Limited (e.g., 1 vote per 10 shares)<\/td><\/tr><tr><td>Dividend Payout<\/td><td>Standard<\/td><td>Often higher<\/td><\/tr><tr><td>Share Price<\/td><td>Usually higher<\/td><td>Lower due to fewer rights<\/td><\/tr><tr><td>Suitability<\/td><td>Active investors<\/td><td>Passive income-focused investors<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 id=\"simple-example\" class=\"wp-block-heading\">Simple Example<\/h2>\n\n\n\n<p>Let&#x2019;s say you buy 100 ordinary shares of a company called &#x201C;HappyFoods Ltd.&#x201D; These shares give you:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>A say in company decisions (1 vote per share)<\/li>\n\n\n\n<li>A chance to earn dividends when the company does well<\/li>\n\n\n\n<li>A potential gain if the share price goes up<\/li>\n<\/ul>\n\n\n\n<p>But remember&#x2014;if the company does badly, the value of your shares can fall too.<\/p>\n\n\n\n<h2 id=\"why-should-you-invest-in-ordinary-shares\" class=\"wp-block-heading\">Why Should You Invest in Ordinary Shares?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Ownership<\/strong>: You actually own a part of the company.<\/li>\n\n\n\n<li><strong>Profit Sharing<\/strong>: You can earn through dividends and <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/capital-gain\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">capital gain<\/a>s.<\/li>\n\n\n\n<li><strong>Voice in Management<\/strong>: You get a say in how the company is run.<\/li>\n\n\n\n<li><strong><a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/liquidity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">Liquidity<\/a><\/strong>: Easy to buy and sell on <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/stock-exchange\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">stock exchange<\/a>s like <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/nse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>NSE<\/a> and <a class=\"glossaryLink\"  href=\"https:\/\/lemonn.co.in\/blog\/glossary\/bse\/\"  data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]'  tabindex='0' role='link'>BSE<\/a>.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"things-to-keep-in-mind\" class=\"wp-block-heading\">Things to Keep in Mind<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Risk of Loss<\/strong>: If the company does poorly, share prices may drop.<\/li>\n\n\n\n<li><strong>Uncertain Dividends<\/strong>: No fixed income&#x2014;dividends are not guaranteed.<\/li>\n\n\n\n<li><strong>Last Claim<\/strong>: In case of bankruptcy, ordinary shareholders get paid last.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"summary\" class=\"wp-block-heading\">Summary<\/h2>\n\n\n\n<p>Ordinary shares are the building blocks of investing in the stock market. They give you ownership, voting rights, and the opportunity to earn returns&#x2014;but also come with risks. They&#x2019;re perfect for long-term investors who believe in the growth of a company.<\/p>\n\n\n\n<p>Let me know if you&#x2019;d like this in a downloadable format or as part of a full glossary section!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ordinary shares, also known as <a class=\"glossaryLink\" href=\"https:\/\/lemonn.co.in\/blog\/glossary\/equity\/\" data-gt-translate-attributes='[{\"attribute\":\"data-cmtooltip\", \"format\":\"html\"}]' tabindex=\"0\" role=\"link\">equity<\/a> shares, are the most common type of shares that companies issue. If you&#x2019;ve ever invested in the stock market, chances are you&#x2019;ve bought ordinary shares. Let&#x2019;s understand what they are in simple, everyday language. What Are Ordinary Shares? Ordinary shares represent ownership in a company. When you buy an [&#x2026;]<\/p>\n","protected":false},"author":9,"featured_media":0,"menu_order":0,"template":"","meta":{"footnotes":""},"class_list":["post-7122","glossary","type-glossary","status-publish","hentry"],"blocksy_meta":[],"_links":{"self":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary"}],"about":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/types\/glossary"}],"author":[{"embeddable":true,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":1,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7122\/revisions"}],"predecessor-version":[{"id":7123,"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/glossary\/7122\/revisions\/7123"}],"wp:attachment":[{"href":"https:\/\/lemonn.co.in\/blog\/wp-json\/wp\/v2\/media?parent=7122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}