<p>Ordinary Shares of Stock, often simply referred to as ordinary shares or equity shares, are a type of security that represents partial ownership in a company. They are the most common type of shares issued by companies and are listed on stock exchanges worldwide.</p>

<h2>How It Works</h2>
<p>Ordinary shares are typically issued with a nominal value, often a small amount like £0.01 or $0.01 per share. The market price of these shares can vary significantly from the nominal value, reflecting the company's performance and market sentiment.</p>
<p>Holders of ordinary shares have voting rights, usually one vote per share, allowing them to influence the company's decisions. They also have the right to receive a share of the company's profits, distributed as dividends, although this is not guaranteed and depends on the company's performance and board of directors' discretion.</p>
<p>In the event of a company's liquidation, ordinary shareholders are the last in line to receive their share of the assets after all other creditors and preferential shareholders have been paid. However, they stand to gain the most if the company is successful and its value increases.</p>

<h2>Why It Matters</h2>
<p>Ordinary shares are a crucial component of a company's capital structure and play a significant role in the broader economy. They provide a means for companies to raise funds from the public, enabling them to invest in growth and expansion. For investors, ordinary shares offer the potential for capital appreciation and dividend income, although they also carry risks, including the possibility of losing their initial investment.</p>
<p>For instance, consider a company like Apple Inc. Ordinary shareholders of Apple have the right to vote on key decisions, receive a share of the company's profits in the form of dividends, and have benefited significantly from the company's growth in value over the years. However, they would also have experienced the volatility of the company's share price and the risk of losses during market downturns.</p>