Apples mainly to international equities. Shares of non-U.S. companiestraded in their individual home markets. Usually cannot be delivered in the U.S. See: ADR.
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.
a FINANCIAL SECURITY issued to those individuals and institutions who provide long-term finance for JOINT-STOCK COMPANIES. Ordinary SHAREHOLDERS are entitled to any net profits made by their company after all expenses (including interest charges and tax) have been paid and they generally receive some or all of these profits in the form of DIVIDENDS. In the event of the company being wound up they are entitled to any remaining ASSETS of the business after all debts and the claims of PREFERENCE SHAREHOLDERS have been discharged. Ordinary shareholders generally have voting rights at company ANNUAL GENERAL MEETINGS which depend upon the number of shares which they hold. However, some UK and overseas companies have both voting and NONVOTING SHARES, where the company founders or directors have sought to raise new share capital without diluting their control by issuing non-voting shares. See also SHARE CAPITAL.
a FINANCIAL SECURITY issued to those individuals and institutions who provide long-term finance for JOINT-STOCK COMPANIES. Ordinary SHAREHOLDERS are entitled to any net profits made by their company after all expenses (including interest charges and tax) have been paid, and they generally receive some or all of these profits in the form of DIVIDENDS. In the event of the company being wound up (see INSOLVENCY), they are entitled to any remaining ASSETS of the business after all debts and the claims of PREFERENCE SHAREHOLDERS have been discharged. Ordinary shareholders generally have voting rights at company ANNUAL GENERAL MEETINGS, which depend upon the number of shares that they hold. See also SHARE CAPITAL.
All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.