- These are securities that represent equity ownership in a company. Common shares let an investor vote on such matters as the election of directors. They also give the holder a share in a company's profits via dividend payments or the capital appreciation of the security. The New York Times Financial Glossary
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* * *Common stock, or ordinary shares, represent ownership in a limited liability company. These are companies in which the owners' liabilities are limited to the shareholders' funds and the shareholders usually appoint directors to manage the company on their behalf. Holders of common stock are entitled to dividends when they are declared. They have the last claim on the assets and income of a company, after other creditors have been paid.
* * *common stock UK US noun [C or U] (UK also ordinary stock)► STOCK MARKET a share or shares of a company providing the owner with a right to vote at shareholder meetings and to receive a part of the company profits as a dividend
Financial and business terms. 2012.
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