Common stock - Financial definition
Financial acronyms
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Countries
: Canada, United States of America
Concise definition of the term common stock
A share of common stock is a security that represents equity ownership in a company, providing its holder voting rights and entitling him to a share of the company's results through dividends and/or capital appreciation.
Comprehensive definition of the term common stock
In the event of liquidation, holders of common stock have rights to the company's assets, after the holders of bonds, other debt, and preferred shares have been satisfied.