Equity shares and Ordinary shares.

That is shares whose share holder are not entitled to be paid fixed amount of interest. Ordinary shares are shares that constitute the risk capital, (equity capital) as they carry no prior right in relation to dividends or return of nominal value. They however carry the rights which are unlimited in extent that is if the company is successfully the ordinary share holders are not restricted to fixed dividend and the high yield upon their shares will cause these to increase in value. Similarly if there are surplus assets when a winding up, the ordinary share holders will take what is left after the preference share holders has been satisfied. Since ordinary shares holder carry the risk of the enterprise they generally have full voting rights in a general meeting.