Ordinary Shares
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Accounting for Companies Limited by Shares
MS: Syer Biasa · EN: Ordinary Shares · ZH: 普通股
Meaning
Ordinary shares are the main units of a company's capital that give the holder voting rights at the general meeting. Ordinary shareholders receive dividends at a rate that is not fixed, depending on the company's profit and the board's decision. They bear the highest risk but have the potential to receive higher returns.
Example
For example, Bistari Berhad issues 200,000 ordinary shares of RM1 each. When the company earns a high profit, the board declares a dividend of 8 sen per share, so a holder of 1,000 ordinary shares receives RM80.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 5