Common Stock

Definition

• A type of security that denotes partial ownership in a corporation, but "common stocks" are distinct from "preferred stocks" in that common stocks are paid dividends after preferred stocks. Likewise, in the event of the corporation's bankruptcy, common stockholders receive debt repayment after preferred stockholders, which oftentimes leave common stockholders with little or no compensation. Common stocks usually provide the stockholder voting rights on certain matters ("voting shares"), but some common stocks have a non-voting class of stocks ("non-voting shares"). Also known as "common share," or "ordinary share."

Synonyms
ordinary share, ordinary stock, voting stock, common share, non-voting share, non-voting stock, voting share

Acronyms
CS

Alternate Spellings
preferred stock

Related Terms and Acronyms

• Business (busn) — Abbreviation,
  • Economic activities of a given type.
  • A company, either for-profit or non-profit.
  • Commercial, industrial or professional activities undertaken by an entity.
• Common Stock Non-Voting (CSNV) — Acronym,
  ➥ Also referred to as non-voting shares.
• Corporation — Definition,
  • A legal entity that is legally separate from its owners and employees.
• Debt Exchangeable for Common Stock (DECS) — Acronym,
• Equity — Definition,
  • Ownership in an asset.
  • The value of a property minus outstanding mortgage debt and other liens.
• Incorporated Business — Definition,
  • A company that exists as a corporation.
• Initial Public Offering (IPO) — Acronym,
  • When shares of a corporation become available to the public for the first time.
• Investment Banking (IBK) — Acronym,
  • Bank operations that manage a bank's funding position, as well as its holdings of Treasury bills, bonds and preferred and common stock.
• Net Income Available for Common Stock (NIAC) — Acronym,
• Preferred Stock — Definition,
  • A type of security that signifies part ownership in a corporation and is given preferential treatment over common stocks.
• Privately Held Company — Definition,
  • A company that is not listed on a stock exchange.
• Publicly Traded Company — Definition,
  • A company that is sold on a stock exchange.
• Return on Equity (ROE) — Acronym,
  • A ratio that shows how profitable a company is when compared to shareholder equity.
• Secondary Market — Definition,
  • A market where financial instruments such as stocks, bonds, options and futures are bought and sold to investors.
• Security — Definition,
  • Property designated as collateral.
  • A document stating ownership of a stock or bond.
  • A tradable financial implement that represents ownership, the rights to ownership or debt.
• Stock — Definition,
  • A share of the ownership of a company.