common stock


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Common stock

Securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company's profits via dividend payments or the capital appreciation of the security. Units of ownership of a public corporation with junior status to the claims of secured/unsecured creditors, bondholders and preferred shareholders in the event of liquidation.

Common Stock

Stock in a publicly-traded company that entitles holders to vote in the annual meeting, to elect the board of directors, and to generally exercise control of the company. While common stockholders are important in terms of their level of control, they have the least precedence in the event of liquidation. That is, if the company goes bankrupt, common stockholders do not receive any money until all bondholders, other debt holders, and preferred shareholders are paid in full. Likewise, common stock is not entitled to a guaranteed dividend. Common stock is also called ordinary stock.

common stock

A class of capital stock that has no preference to dividends or any distribution of assets. Common stock usually conveys voting rights and is often termed capital stock if it is the only class of stock that a firm has outstanding (that is, the firm has neither preferred stock nor multiple classes of common stock). Common stockholders are the residual owners of a corporation in that they have a claim to what remains after every other party has been paid. The value of their claim depends on the success of the firm. See also callable common stock, common stock equivalent, puttable common stock.

Common stock.

When you own common stock, your shares represent ownership in the corporation and give you the right to vote for the company's board of directors and benefit from its financial success.

You may receive a portion of the company's profits as dividend payments if the board of directors declares a dividend. You also have the right to sell your stock and realize a capital gain if the share value increases.

But if the company falters and the price falls, your investment could lose some of or all its value.

common stock

a North American term for ORDINARY SHARES.

Common Stock

Shares in the ownership of a corporation that are entitled to residual dividends, after bonds and preferred stock have first received interest and dividends. A common stockholder usually has a vote in deciding company affairs, including the election of a corporation's board of directors.
References in periodicals archive ?
Throughout any period during which any Alumax class C common stock was outstanding, each share of the class B common stock (held by the Mitsui Group) had one vote, and each share of the class C common stock (held by the Amax Group) had four votes, on each matter submitted to the Alumax shareholders.
Under that method's assumptions, proceeds from the exercise of warrants and options are limited to the repurchase of no more than 20% of the enterprise's outstanding common stock at fiscal yearend.
If an acquiror purchases 20% or more of the Company's outstanding common stock, a provision in the Plan will become effective which entitles the holders of Rights (other than the acquiror) to buy shares of common stock of the Company which have a market value of twice the Exercise Price of each Right.
of Simplot is the first Tax Court case to use a percentage of the company's value to calculate the premium for voting common stock.
Consensus: The task force concluded the convertible preferred stock would not be considered a common stock equivalent unless the yield on the issue date is less than 66 2/3% of the corporate Aa bond rate.
If an acquiror purchases at least 15 percent of the company's common stock, but has not achieved a 50 percent stake, the board may cause each of the rights (other than the acquiror's rights) to be exchanged for one share of common stock.
Series E-7 Warrant to purchase up to 82,218,750 million shares in the aggregate of common stock at an exercise price of $0.
37 million of shares of Duke's common stock at a price of $40.
Cumulus also announced that it has entered into a definitive agreement to purchase shares of Class B Common Stock from Banc of America Capital Investors SBIC, L.
Upon today's market open, PTC's common stock will begin trading on a split-adjusted basis under the trading symbol "PMTCD" for a period of 20 trading days.