common stock


Also found in: Dictionary, Thesaurus, Legal, Acronyms, Encyclopedia, Wikipedia.

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 ?
Another way to value common stock is known as the discounted cash flow ("DCF") method.
FNB stockholders who made no election will receive 12.6000 shares of Citizens common stock for each of their shares, plus cash in lieu of any fractional share of Citizens common stock.
Companies with only common stock outstanding have a simple capital structure and should present basic EPS for income from continuing operations and net income on the face of the income statement.
The possible effects are not limited to companies that issue innovative financial instruments like "funny" preferreds or puttable common stock. Issuers of more traditional instruments like convertible bonds and employee stock options could be affected as well.
Shareholders of 5.4 million shares who elected to receive the dividend in cash were selected in the lottery and will receive USD2.02 per share in cash; holders of 127.8 million shares who made no election, or elected to receive the dividend in cash but were not selected in the lottery, will receive USD0.44 per share in cash and USD1.58 per share in common stock; holders of 11 million shares who elected to receive the dividend in shares of common stock will receive USD2.02 per share in common stock.
There are currently 84,000 shares of Series C Preferred Stock outstanding, all of which will be converted to Common Stock on the Mandatory Conversion Date.
This exchange ratio is fixed and will not be adjusted to reflect share price changes of the AC Class A common stock or GBL Class A common stock prior to the closing of the exchange offer.
Fractional shares of Valvoline common stock will not be distributed to Ashland stockholders.
According to the company, it believes that the increased market price of its common stock that is expected to result following the implementation of the reverse stock split may improve the marketability and liquidity of its common stock and encourage interest and trading in its common stock.
Under the terms of the 19 November 2014 deal, former Capital Pacific shareholders were entitled to receive either USD 16.00 per share in cash or 1.132 shares of Pacific Continental common stock for each share of Capital Pacific common stock, or a combination of 40.0% in the form of cash and 60.0% in the form of Pacific Continental common stock, subject to the proration and allocation procedures set forth in the merger agreement.
Compuware Corporation (NASDAQ: CPWR) said it has determined the final distribution ratio relating to its distribution of all of its 31,384,920 shares of Covisint Corporation (NASDAQ: COVS) common stock on October 31, 2014, as a pro rata dividend on shares of Compuware common stock, and on shares of Compuware common stock deliverable under restricted stock units relating to Compuware common stock.