Common Stock (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
- Investors typically purchase common stock in hopes of earning long-term capital appreciation through the growth of the company.
- Common stock represents a claim on a portion of the company's assets and earnings.
- As an owner of common stock, you have the right to vote on matters affecting the company's operations and governance.
- Prior to its initial public offering, the company issued common stock to private investors to raise capital for expansion.
- The value of the company's common stock can fluctuate significantly in response to market conditions and investor sentiment.