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Definition
Ordinary shares are the most common class of share, carrying the right to vote at general meetings, to receive dividends declared on them, and to a share of any surplus assets if the company is wound up — after all creditors and preference shareholders are paid.
In plain terms
These are the 'normal' shares most owner-directors hold. They give you control and the upside if the company thrives, but they're last in the queue if things go wrong.
Why it matters for your company
Because ordinary shares carry votes, issuing more to raise money dilutes existing control — a key trade-off against borrowing. See equity vs debt finance.
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