An equity instrument that is subordinate to all other classes of equity instruments.

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Shares giving the holder a share of declared dividends and net assets when the business closes. Ordinary shareholders typically have voting rights.

 Example:

• Dividend     Rights: Owners of ordinary shares receive a proportionate     share of dividends declared based on their shareholding.
• Asset     Rights: If the company is wound up, ordinary shareholders     receive a share of the remaining assets after all debts are paid

Real-Life Scenario:

A family business issues 100,000 ordinary shares, each representing a 1% ownershipstake. The shareholders receive dividends and vote on company matters.

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