Common Stock Equivalent
外汇网2021-06-19 16:33:59
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Securities such as stock options, warrants, pferred bonds, two-class common stock and contingent shares that can be converted into common stock. Sometimes pferred stock can also be converted to common stock.
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Taobiz explains Common Stock Equivalent
Also called common shares or ordinary shares, common stock is what most people buy when they invest in a stock. It typically gives them the right to vote on corporate issues in proportion to their ownership in the company and the right to receive pidend payments. Common stock may be subpided into class A shares and class B shares, which can have different voting and pidend rights. The other type of stock is called pferred stock, and its holders receive priority over common stock holders when pidends are paid and in the event the company liquidates.
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