shares no limited company is it it's a
term that I take for granted but for
many people they don't really know what
it means and I should say that nearly
all limited companies in this country
are limited by share and buy share that
means the issue shares each share
represents an ownership of that company
so if the company has issued a hundred
shares and you on one of them you
weren't one percent of the company
now these shares come with certain
rights the most common sort of share is
an ordinary share and typically ordinary
shares come with three rights firstly
and the right to vote in it in a
shareholders meeting or a general
meeting and it's one share equals one
babe so if you went because 100 shares
issued you and one share you haven't got
much power if there's 100 shares issued
and you end 51 of those shares you can
dominate the meetings you have a real
power in the company so that's the first
right the second right is the right to
share in a winding up or on the sale of
a company so when the companies wound up
or sold to somebody else the cash that's
dished out whether from the winding
earth or from the the buyer of the
company it's given to the previous
shareholders of the company so if you
were one percent of the company you're
entitled to one percent of the that
money this dished out so a thousand
pounds dished out if it was if that was
the capital in the company was one W B
entire to zoom ten pounds the third
right is the right to receive profit
from the company in the form of
dividends so when a company is profit
the directors vote a dividend and it's
paid out and we have another video on
dividends elsewhere on the website