common stock equivalent

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Common stock equivalent

A convertible security that is traded like an equity issue because the optioned common stock is trading above the conversion price.

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.

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APB Opinion

Common Stock

Under existing rules, a convertible security is a common stock equivalent if at the time it is issued it has an effective yield of less than two-thirds of the current average Aa-rated corporate bond yield.

The FASB and the IASC redeliberate EPS by Read, William J. / Journal of Accountancy

A common stock equivalent is a security that, because of the terms under which it was issued, is in substance the same as common stock.

Earnings per share for ESOP convertible preferred stock by Journal of Accountancy

The per common stock equivalent price was established at a discount of approximately 10% off the trailing 10 day volume weighted average closing price for the common stock on September 9, 2004.

Airspan Successfully Completes $29.2 Million Private Placement of ... by Business Wire

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