EQUITY SHARES

equity shares: translation

Also referred to as ordinary shares or ( in the USA) common stock. Shares which represent the right to participate in the residual assets of a business and which usually have voting rights. They will usually receive a dividend ( dividends), the level of which depends on how successful the company is. If the company is wound up, they will be entitled to any assets left over after all other investors have been paid off. Equity shareholders will have limited liability, which means that their liability to contribute money to the company is limited to the nominal value of the share which they hold. If a share is fully paid as to its nominal value, then the holder of the share has no further liability to pay money to the company in any circumstances. Dresdner Kleinwort Wasserstein financial glossary