Wiktionary
n. (context finance English) share of an ownership interest in the equity of a corporation or other entity with limited liability entitled to dividends, with financial rights junior to preferred stock and liability.
WordNet
n. stock other than preferred stock; entitles the owner to a share of the corporation's profits and a share of the voting power in shareholder elections; "over 40 million Americans invest in common stocks" [syn: common shares, ordinary shares]
Wikipedia
Common stock is a form of corporate equity ownership, a type of security. The terms "voting share" or "ordinary share" are also used frequently in other parts of the world; "common stock" being primarily used in the United States.
It is called "common" to distinguish it from preferred stock. If both types of stock exist, common stockholders usually cannot be paid dividends until all preferred stock dividends are paid in full; it is possible to have common stock that has dividends that are paid alongside the preferred stock.
In the event of bankruptcy, common stock investors receive any remaining funds after bondholders, creditors (including employees), and preferred stockholders are paid. As such, common stock investors often receive nothing after a liquidation bankruptcy Chapter 7.
On the other hand, common shares may perform better than preferred shares or bonds over time, in part to accommodate the increased risk.
Usage examples of "common stock".
They bought him a bunch of Avon Products common stock at $119 a share.
The earth is given as a common stock for man to labor and live on.
About a million of the common stock was held as treasury stock - was never issued.
Santo then made a cursory investigation of the company's condition before beginning a very active trading in the common stock.
He was in the process of developing an idea which he knew to be just and inspired by God, so he continued, But if men of good will were to go to Hitler and remind him of the fact that Jews and Jesus are descendants from a common stock, this infernal slippage into barbarism might be halted.
The common stock of Las-Vegas-in-the-Sky continued to move up against the downward trend of the Market: most investment advice peddlers remained bullish basing their expectations on past correlations between weather, the Market, and women's styles.
Some of the words I defined for my readers were: common stock, preferred stock, bonds, municipal bonds, debentures, margin, selling short, puts and calls, living trust, joint tenancy, tenants in common, float, load, points, deficiency judgement, call money, prime rate, gold standard, flat money, easement, fee simple, eminent domain, public domain, copyright, patent, etc.
The common stock of Las-Vegas-in-the-Sky continued to move up against the downward trend of the Market: most investment advice peddlers remained bullish basing their expectations on past correlations between weather, the Market, and women’.
Remembering that we assemble not only for the promotion of our happiness, but with the view of adding something to the common stock, an air of languor or indifference in any member of our body would be regarded by the others as a kind of treason.