Ordinary share capital, Biology

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Ordinary share capital

This type of Equity finance is raised from the public from the sale of ordinary shares to the shareholders. This finance is presented to limited companies. It is a permanent finance like the owner/shareholder cannot recall this money except under liquidation. So it is a base on which other finances are raised.

It carries a return which is variable as ordinary dividends. These shares carry voting rights and can influence the company's conclusion creating process at the AGM.

These shares carry the highest risk in the company as high securities - documentary claim to since of:

a) Doubt of return

b) Cannot sure refund

c) Have residual claims - claim last upon assets, and claim last on profits

Conversely this investment grows with retention.


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