Definition

1. Noun:
   • A type of equity security representing ownership in a corporation: Common stock is a class of corporate stock that provides shareholders with ownership rights in the issuing company.
   • Entitlement to profits and voting rights: Owners of common stock are typically entitled to a share of the corporation's profits (through dividends) and have voting power in corporate matters, such as electing the board of directors.

Usage Examples

• Noun:
  • Investors often buy common stock to participate in a company's long-term growth.
  • The rights of common stock holders include voting on major corporate decisions.
  • Over 40 million Americans invest in common stocks.

Advanced Usage

• "To hold common stock": to own shares of common stock in a company.
  • She holds common stock in several technology firms.
• "Issuance of common stock": the act of a corporation offering and selling new common shares to raise capital.
  • The company's issuance of common stock funded its expansion.

Variants and Related Words

• Common shares (n): A synonym for common stock, used interchangeably.
  • He purchased 100 common shares of the company.
• Equity (n): Ownership interest in a company, often represented by common stock.
  • Common stock is a form of equity.
• Preferred stock (n): A different class of stock that usually has priority over common stock for dividend payments and asset distribution but often lacks voting rights.
  • The company's capital structure includes both common stock and preferred stock.

Synonyms

• Ordinary shares: (primarily British English) Equivalent to common stock.
• Voting shares: Refers to common stock that carries voting rights.

Related Phrases

• "Blue-chip common stock": Common stock issued by a large, well-established, and financially sound company.
  • The fund invests primarily in blue-chip common stocks.
• "Common stock equity": The total value represented by all outstanding common shares.
  • The merger increased the firm's common stock equity.

Related Idioms

• "To have skin in the game": (Idiom) To have a personal investment or stake in an endeavor, often through ownership like common stock.
  • As a holder of common stock, the CEO has real skin in the game.

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