Ordinary shares are shares of ownership in a corporation, therefore, C is correct. They are usually entitled to the right to vote at shareholder meetings, which distinguishes them from preference shares. Therefore, A, B, and D are incorrect.

Solved

Ordinary Shares Are

Question 10

Multiple Choice

Ordinary shares are:

A) investments in which the investors are entitled to receive consistent cash flows.
B) instruments that give holders a claim on a firm's earnings to be paid before paying the bondholders.
C) shares of ownership in a corporation,that are usually entitled to the right to vote.
D) shares of ownership in a corporation,that pay no dividends.

Correct Answer: