What are ordinary shares known for?

Ordinary shares are primarily known for providing shareholders with full voting rights, which allows them to participate in the decision-making processes of the company, such as electing directors and approving major corporate actions. Additionally, dividends on ordinary shares are declared at the discretion of the company's directors. This means that while ordinary shareholders may receive dividends, there is no guarantee or fixed rate, and dividends can fluctuate based on the company’s performance and decisions made by management. Thus, the dynamic nature of ordinary shares, with their associated rights and contingent dividend declaration, makes them distinct in the context of share ownership.

In contrast, options that mention fixed dividends, priority repayments, or guaranteed returns are characteristics associated with other types of shares, such as preference shares or bonds, which do not inherently represent the traditional nature of ordinary shares.