common stock


Campbell R. Harvey's Hypertextual Finance GlossaryDownload this dictionary
Common stock
These are 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. Used in the context of general equities.) units of ownership of a public corporation with junior status to the claims of secured/unsecured creditors, bond and preferred shareholders in the event of liquidation.