Ordinary shares or ordinary stock as they are commonly known are normally issued with a face value of either $0.10 each or $1 each.

It is common that some companies might reduce the face value from $1 to $0.50 or to $0.1. This is to make the ordinary shares more affordable to buyers or investors. The holders of these shares are the real owners of a company. They bear the rights and enjoy the profits ( or suffer the loses).

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In other words, ordinary shares has less priority compared to preference shares not only in asset liquidation but also dividend distribution. During dividend distribution, preference shares will have higher priority to receive higher dividends than ordinary shares. However, preference shares do not entitle the right for the shareholder to vote in general meetings or decide on the company policy.  No doubts, ordinary shares or ordinary stock are the most common type of shares available in stock market.