Common stock

Common stock

A security that represents equity ownership in a corporation or company. Common shares allow the investor to take part in voting the board of directors.

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Part of Speech: noun
Synonym(s):
Blossary:
Industry/Domain: Financial services
Category: Stocks & securities
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Related terms

common stock

Earth science; Mapping science

An equity investment that represents ownership of a firm, which full participation in its success or failure. The firm's directors must approve dividend payments.

common stock

Financial services; Private equity

(USA) The basic form of equity ownership in a corporation. Generally equivalent to ordinary shares in the United Kingdom.

common stock

Financial services; Stocks & securities

A security that represents equity ownership in a corporation or company. Common shares allow the investor to take part in voting the board of directors.

common stock

Financial services; General Finance

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 ...

common stock

Banking; Initial public offering

A unit of ownership in a public company for which the holder can vote on matters and receive dividends from the company's growth, but he or she is the last to receive assets if ...

above par

Financial services; Stocks &securities

If bonds are re-sold on the secondary market, and if interest rates are lower that the bond's coupon rate, the bond will be sold at a premium, or above par.

P/E ratio

Financial services; Stocks &securities

The ratio of a company's current price per share and average earnings per share. The former is divided by the latter. A high ratio suggests high growth potential in the future.