What are ordinary shares ?

Ordinary shares are ownership certificates with their own specific characteristics. Each share in a company represents a fraction of its share capital.

A share is a form of ownership with its own specific characteristics. Each share in a company represents a fraction of the company's share capital and makes its holder, the shareholder, one of the company's ‘owners’. The shareholder is therefore entitled to take part in the annual General Meeting of shareholders, where the direction and management of the company are discussed.

As a general rule, when a company is set up, unquoted shares are issued to make up its share capital.

Each year, depending on the company's results and strategy, the Annual General Meeting decides whether to pay a dividend and the amount per share.

In addition to dividends, shares can generate capital gains on resale if the share price has risen. Conversely, the resale of shares may result in capital losses and, consequently, a financial loss on the capital invested.