common stock
common stock — noun
1. shares in a company that give the owner the right to vote at shareholder meeting
shares in a company that give the owner the right to vote at shareholder meetings and to receive a portion of the profits, but that are paid after other types of stock if the company fails
Tariro bought 100 shares of common stock in the solar panel company last year.
common stock + in [company]
The board voted to issue new common stock to raise money for the new factory.
issue new common stock
Each share of common stock gives the owner one vote at the annual meeting.
Investors who hold common stock may receive dividends when the company earns a profit.
hold common stock + receive dividends
Mira sold her common stock in the coffee chain after the CEO resigned.
- common stock in [company]
- issue common stock
- buy / purchase common stock
- hold common stock
- common stock shareholder
- common stock dividend
- share of common stock
- common stock offering
- convertible common stock
- ordinary shares
the British English term for the same type of stock
- equity shares
a more formal term; often used in legal or regulatory contexts
- voting stock
focuses on the voting right that common stock usually carries, though some common stock may be non-voting
- preferred stock
a different class of stock that has priority for dividend payments but usually no voting rights
Usage Note
Common stock is the most basic type of equity a company issues. In British English the term 'ordinary shares' is more common.
Common Mistakes
Etymology
First known use
1852
1852, in the meaning defined above