Legal Dictionary

common stock

Definition of common stock

Noun

common stock (countable and uncountable; plural common stocks)

  1. (finance) Shares 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 liabilities.

    Common stocks are trading below preferreds in these bad times.
    The company's common stock is a bargain.

Coordinate terms

Further reading

A voting share (also called Common stock or Ordinary share) is a share of stock giving the stockholder the right to vote on matters of corporate policy and the composition of the members of the board of directors.

References:

  1. Wiktionary. Published under the Creative Commons Attribution/Share-Alike License.



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