Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation. In the event of liquidation, common stockholders have rights to a company's assets only after bondholders, other debt holders, and preferred stockholders have been satisfied. Typically, common stockholders receive one vote per share to elect the company's board of directors (although the number of votes is not always directly proportional to the number of shares owned). The board of directors is the group of individuals that represents the owners of the corporation and oversees major decisions for the company. Common shareholders also receive voting rights regarding other company matters such as stock splits and company objectives. In addition to voting rights, common shareholders sometimes enjoy what are called "preemptive rights". Preemptive rights allow common shareholders to maintain their proportional ownership in the company in the event that the company issues another offering of stock. This means that common shareholders with preemptive rights have the right but not the obligation to purchase as many new shares of the stock as it would take to maintain their proportional ownership in the company. also called junior equity.
Related information about common stock:
- Common stock - Wikipedia, the free encyclopedia
Common stock is a form of corporate equity ownership, a type of security. The terms "voting share" or "ordinary share" are also used in other parts of the world; ...
- Common Stock Definition | Investopedia
A security that represents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy.
- What is common stock? definition and meaning
Definition of common stock: Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the ...
- Common Stock versus Preferred Stock, and Stock Classes ...
Oct 16, 2012 ... Typically, common stock shareholders receive one vote per share to elect the company's board of directors (although the number of votes is not ...
- Common Stock - Financial Dictionary - The Free Dictionary
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 ...
- Common Stock
When they hear the word "investing", most people think of common stock. A share of common stock represents a proportional ownership interest in the ...
- Common Stocks vs. Preferred Stocks
Common stock is ownership in a company, just the basic stock that we're used to trading. Companies sell common stock through public offerings, and it's traded ...
- Common Stock and Stockholders' Equity | AccountingCoach.com
The following terms that pertain to common stock are explained: authorized, issued, outstanding, and treasury. Gain an understanding that stockholders' equity ...