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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Common Stock Equivalent

A convertible security that is traded as if it was a common stock. The common stock equivalent is traded like common stock because it can be exchanged for actual common stock on demand from the holder.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
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After common stock and fully participating securities, the additional classes of invested capital will convert based on their respective price per common stock equivalent, with the lowest converting first.
The new Statement replaces PEPS with basic EPS, significantly simplifying the EPS calculation by not considering whether securities are common stock equivalents. This change makes EPS calculations easier.
15 as amended and interpreted), require public enterprises with complex capital structures (includes securities that could have a dilutive effect on earnings per share) to present primary earnings per share (net income divided by common stock and common stock equivalent shares outstanding) as well as fully diluted earnings per share.
The simplification, brought about by eliminating common stock equivalents and the primary EPS calculation, also eliminates a source of arbitrariness.
The concept of common stock equivalents would disappear entirely.
As a result, on December 2, 2013 the company's 13,299 outstanding shares of series F common stock equivalents will automatically convert into 13.299m shares of common stock, representing 66.02% of the company's total equity.
"Now the FASB has decided to go along with the way the rest of the world has looked at presenting EPS and have a measure that is simple, with common stock outstanding." Robbins said the difference between basic and primary EPS was that common stock equivalents are not considered in the computation of basic EPS.
Primary EPS is simple EPS adjusted to include the effects of common stock equivalents exercisable within five years.
Consumer goods and specialty pharmaceutical company Innovus Pharmaceuticals Inc (OTCQB: INNV) (Innovus Pharma) revealed on Monday that it has entered into a definitive agreement with a healthcare-dedicated institutional investor for the sale of 45,306,347 shares of common stock (or common stock equivalents), series A warrants to purchase up to 45,306,347 shares of common stock, as well as series B warrants to purchase up to 45,306,347 shares of common stock, in a private placement priced at USD0.07 per share and associated warrants for gross proceeds of approximately USD3.17m.
In connection with the private placement, the company will issue approximately 500,000 shares of common stock or common stock equivalents and warrants to purchase approximately 400,000 shares of common stock, subject to adjustment.
CoreSite Realty Corporation (NYSE:COR), a premier provider of secure, reliable, high-performance data center and interconnection solutions across the US, has announced a cash dividend of USD 0.98 per share on common stock and common stock equivalents for the fourth quarter of 2017, the company said.
According to Broadway, the combination of the preferred stock exchanges, the private placement, and the transactions related to the company's senior debt exchange increased the book value of the company's common equity by approximately USD 27.81m, and increased the number of shares of common stock and common stock equivalents by approximately 18.23m shares, which represents approximately 90.48% of the total number of pro forma shares of common stock.