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.

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.

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.
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The simplification, brought about by eliminating common stock equivalents and the primary EPS calculation, also eliminates a source of arbitrariness.
In this press release, Umpqua Holdings Corporation makes forward-looking statements about the prospective conversion of the common stock equivalent securities to common stock and its intended use of the capital raised in these offerings, including redemption of the preferred stock held by the Treasury and funding FDIC-assisted transactions.
In the example, the convertible preferred shares are common stock equivalents since their effective yield of 5% ($3,500/$70,000) is less than two-thirds of the Aa corporate bond rate (1 0%).
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.
The weighted average shares of common stock is 3,958,358 shares and the common stock equivalent is 1,658,528.
Original per share net income was 14 cents per share with 5,268,985 outstanding and common stock equivalents.
accounting rules call for the presentation of primary earnings per share (net income/ common stock + common stock equivalents outstanding) and fully diluted earnings per share.
Common stock equivalents outstanding during the two three-month periods were 4,993,481 and 5,395,119, respectively.
016 per share, subject to reduction if the Company fails to achieve specified financial and operating milestones and subject to adjustment for stock splits and combinations, certain dividends and distributions, reclassification, exchange or substitution, reorganization, merger, consolidation or sales of assets; issuances of additional shares of common stock, and issuances of common stock equivalents.
15 per share with 5,611,421 shares outstanding and common stock equivalents.
Common stock equivalents outstanding during the two six-month periods were 5,186,748 and 5,380,668, respectively.