common stock equivalent(redirected from Common-Stock Equivalents)
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Common stock equivalent
Common Stock Equivalent
common stock equivalent
A security viewed as basically the same as common stock, generally because the equivalent security may be exchanged for shares of common stock. Common stock equivalents include convertible bonds, convertible preferred stock, options, and warrants. Common stock equivalents are used in calculating earnings per share even though the calculation overstates the actual number of shares outstanding.