Definition of common stock

Securities (called ordinary shares in the UK) that confer ownership in a publicly listed company. Holders are entitled to the dividends declared by the company and have the right to vote on the appointment of directors and other important matters. However they rank below holders of preferred stock (preference shares in the UK) and creditors - both secured and unsecured - in any claim over the assets of a company.

FT Articles & Analysis

Related Terms

Discussion

Lexicon on Twitter