Recent Examples of common stock from the Web
Based upon the closing price of First Midwest’s common stock on June 5, on the Nasdaq Stock Market, the overall transaction is valued at approximately $91 million.
Or none of those: After seven years, SoftBank’s shares in Cruise would convert to common stock in GM.
To hedge itself, Monster is also issuing 75 million shares of common stock.
Esmark's common stock closed at $9.28 per share on NASDAQ on Dec. 17, 2007, Bouchard said in his book.
As previously announced, the CBS Board will hold a meeting at 5PM today to consider declaring a dividend of shares of Class A common stock to all of the Company's Class A and Class B stockholders, as is permitted under CBS' charter.
The bank granted the underwriters a 30-day option to buy up to 300,000 additional shares of common stock at the IPO price.
Under the terms of the merger, Infinity shareholders will receive $51.60 in cash and 1.2019 Kemper common shares for each share of Infinity common stock.
Wyndham agrees to cancel 'pushy' sale » ILG shareholders (NASDAQ: ILG) would receive $14.75 in cash and 0.165 share of MVW common stock for each share if the deal closes.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'common stock.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of COMMON STOCK
What It Is
Common stock represents ownership interests in corporations.
How It Works
The most prominent characteristics of common stock are that they entitle the shareholder to vote on corporate matters (typically, the shareholder gets one vote for every share he or she owns, though that is not always the case) such as whether the company should acquire another company, who the board members should be and other big decisions. Common stock also often comes with preemptive rights, which means the shareholder has a "right of first refusal," or first dibs on buying any new stock the company tries to issue.
Perhaps the most important attribute of common stock is that their holders are the last in line when it comes to getting their money back. If the company goes bankrupt and has to sell off its assets, the cash from the asset sale first goes to lenders, employees and lawyers. The shareholders get whatever is left (which is usually nothing, or just a few pennies for every dollar they originally invested).
Why It Matters
If you own one, 100 or 100 million shares of stock in a company, you're an owner of the company. There are different kinds of stocks, and their classifications largely depend on the rights they confer on the holder. Investors evaluate these categories based on their investment objectives, and they look for stocks that meet those objectives. The two most popular categories of stock are common stock and preferred stock.
Although preferred stock owners don't usually get any voting rights, they usually receive a steady dividend and their claim to the company's assets "outrank" the common stockholders' claims (i.e., in the event of bankruptcy, the company must pay off lenders, preferred shareholders, employees and lawyers before the common shareholders get anything).
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