common stock

noun

Pronunciation: ˈkɒmən stɒk

Definition

A type of security representing ownership in a corporation, typically granting the holder voting rights and a claim on a portion of the company's assets and earnings.

Examples

• Most retail investors build their portfolios primarily by purchasing common stock in publicly traded companies.

• Unlike preferred shareholders, owners of common stock are usually the last to be paid if the company faces liquidation.

• The board of directors is elected by the holders of common stock during the annual general meeting.

Synonyms of common stock

Words with a similar meaning to common stock:

• equity
• shares
• ordinary shares

Antonyms of common stock

Words with the opposite meaning to common stock:

• preferred stock

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