Common Shares (Noun)
Meaning
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".
Classification
Nouns denoting possession and transfer of possession.
Examples
- Holding common shares in a company allows shareholders to vote on important matters such as electing the board of directors.
- The company will issue an additional 500,000 common shares to meet the growing demand from investors.
- Common shares are considered a higher risk investment compared to bonds or preferred stock.
- The majority of the investors in the new startup own common shares, rather than preferred shares.
- When the company made its initial public offering, it issued 10 million common shares worth $20 per share.