Recent Examples of common stock from the Web
Unlike mutual funds, which are priced at the end of each trading day, E.T.F.s like ProSports Sponsors can be bought and sold like common stock.
Berkshire's largest stock investment Kraft Heinz is Berkshire Hathaway's single largest common stock investment.
Shareholders are expected to vote at the company’s annual meeting on a proposal from the Nathan Cummings Foundation that would end the dual-class share structure in favor of giving each share of common stock one vote.
Zuckerberg owned little Facebook common stock, but had a 60 percent controlling say on Facebook acquisitions, board seats, and other key decisions, thanks to special super-voting shares.
Financially ailing department store operator Bon-Ton Stores Inc. said Friday its common stock will start trading on the OTCQX Best Market next Thursday.
The company's October news also included: Abeona's (Nasdaq:ABEO) underwritten public offering of 5 million shares of common stock at a public offering price of $16 per share, according to the company's press release.
Current CalAtlantic shareholders will receive an 0.885 share of Lennar Class A common stock, which was priced at $51.34 per share on the New York Stock Exchange on Oct. 27.
Before the chapter 11 filing, the Nussdorf family and Mr. Garcia held a combined 54% of Perfumania’s common stock.
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.
First Known Use of common stock
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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