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Sunday, March 13, 2011

Advantages and Disadvantages of Ordinary Shares

The Advantages of Ordinary Shares (also known as equity shares or common stocks) are:

1) Ordinary shareholders can vote at company's annual general meeting and have the ability to elect the board of directors. Each share carries the right to one vote at the meetings.

2) The ordinary shareholders are the owners of the business and they can receive dividends from the company out of its profit.

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