Definition

1. Noun:
   • Common shares are a type of security that represents ownership in a corporation. Owners of common shares, known as shareholders or stockholders, typically have the right to vote on corporate matters (e.g., electing the board of directors) and may receive a portion of the company's profits in the form of dividends. Their claim on the company's assets and earnings is subordinate to that of creditors, bondholders, and holders of preferred shares.

Examples of Usage

• Noun:
  • The company issued new common shares to raise capital for expansion.
  • As a holder of common shares, she has the right to vote at the annual shareholder meeting.
  • The value of his common shares increased significantly when the company announced strong quarterly earnings.

Advanced Usage

• "to hold common shares": to own common shares in a company.
  • Many institutional investors hold common shares in blue-chip companies for long-term growth.
• "to trade common shares": to buy and sell common shares on a stock exchange.
  • Individual investors can trade common shares through an online brokerage account.

Variants and Related Words

• Common stock (n): A fully synonymous term for "common shares." The terms are used interchangeably in finance.
  • The difference between common stock and preferred stock is important for investors.
• Ordinary shares (n): Another equivalent term, commonly used in British English and other international markets.
  • The company's ordinary shares are listed on the London Stock Exchange.
• Shareholder (n): An owner of one or more shares in a corporation.
  • The shareholders approved the merger proposal.

Synonyms

• Equity: Represents ownership interest in a company, often used broadly to refer to common shares.
• Voting shares: Highlights the key voting rights typically attached to common shares (as opposed to non-voting shares).

Related Phrases

• Common shareholder equity: The portion of a company's total equity that belongs to the common shareholders, calculated as total assets minus total liabilities and preferred equity.
  • The balance sheet shows a steady growth in common shareholder equity.

Noun

1. stock other than preferred stock; entitles the owner to a share of the corporation's profits and a share of the voting power in shareholder elections
   • over 40 million Americans invest in common stocks