Ordinary Equity shares are one of the most common types of shares.

It is a
form of long-term equity that represents ownership interest of the firm. Means
pang matagalan sya na investment kahit pa bumaba O tumaas ang makukuha
mong return as a shareholder of a firm or a company. The number of ordinary
shares an investor owns is proportional to the percentage of ownership he/she
has in a company.If kung ano yung part na tig investment mo yun din
makukuha mong part of ownership sa company.For instance, if a company
issues all of its 50 shares in the stock market and you own 30 out of them. You
would have a 60% ownership of the company. It means that 60% of the shares is
ang pagmamay-ari mo.

Ordinary or common shares are generally issued in the stock market to raise
capital for the company. Even if the company wishes to issue more shares in the
future, shareholders are first given the option to purchase the issued shares in
proportion to your prevailing ownership through the rights issue. This ensures
that the holders' shares in the company remain undiluted.Undiluted means
matatag na ang company and can't be easily brought down.
Ordinary equity share also allow you to benefit from capital growth should the
company do well.
But ordinary equity share is also risky because ordinary share ownership, as a
form of investment and if the company doesn't succeed investors stand to lose
their initial investment.

Then Let's move on to the feature of Ordinary equity share which is the
following:
Par value/No par value - It said that the equity share can be sold with or
without Par value.Ang par value kasi may role sya sa accounting and for legal
purposes. If ang firm na Hindi mag issue ng par value ay pwedeng gumawa ng
kasulatan tungkol sa stated value or pwede rin Ilagay sa libro at Ilagay ang
presyo kung magKano ipinagbili ang equity share.

Authorized, issued, and outstanding - Authorized shares is the maximum

number of shares that a corporation may issued without amending it's charter.
And issued shares is the number of authorized shares that has been sold,
therefore there is also an outstanding shares that can be held by public.
Also Ordinary equity shares has no maturity and It is permanent form of
long-term financing. And once you join a ordinary equity share as a shareholder,
you are given a right to vote or voting rights that give you a position to vote on
the selection of directors and other matters. Furthermore if you can't attend a
meeting you can have a proxy that can vote on your behalf.

So there are common systems of voting which is the majority voting and
cumulative voting.
Majority voting basically means that you have more than 50 percent of the
voters while in cumulative voting is that the shareholders can cast multiple
vote for a single director. Meaning na pwede kang umulit ng vote or pwede kang
mag vote ng ilang beses sa iisang director lang .

Meron pang in ang feature ang ordinary equity share which is the book value
per share which means it has a calculation of equity share.

Also the shareholders holds numerous rights, that aside from the right to vote
they also have a right to receive dividends and if there is liquidation they have
the right to share in that residual assets. Stockholders has the right to transfer
their ownership in the firm to another party and lastly they have the right to
share in the purchase of any new issuance of equity shares. Which is known as
the pre-emptive right.

Preferred share is a class of equity shares which has preferrence over ordinary
equity shares in the payment of dividends and in the distribution of corporation
assets in the event of liquidation.It also carry special rights or preferential
treatments, especially in regard to dividend receipt and capital reimbursement
when an organization is winding up.

In other words preferrence shareholders receive dividends on the highest

priority and also companies return their capital before ordinary shareholder
undergoing liquidation.