Common Shareholder


DEFINITION of 'Common Shareholder'

An individual, business or institution that holds common shares in a company, giving the holder an ownership stake in the company. This will also give the holder the right to vote on corporate issues such as board elections and corporate policy, along with the right to any common dividend payments.

BREAKING DOWN 'Common Shareholder'

In the case of bankruptcy, common shareholders are typically the last to receive anything from liquidation. First, companies pay out all debtholders. If there is anything remaining after that, then preferred shareholders are paid, followed by common shareholders. Commons shares may also come in classes such as Class A or B, with each level having different voting rights and dividend rights.

  1. Preferred Stock

    A class of ownership in a corporation that has a higher claim ...
  2. Dividend

    A distribution of a portion of a company's earnings, decided ...
  3. Preference Shares

    Company stock with dividends that are paid to shareholders before ...
  4. Corporate Action

    Any event that brings material change to a company and affects ...
  5. Closely Held Shares

    The shares in a publicly traded company held by a small number ...
  6. Common Stock

    A security that represents ownership in a corporation. Holders ...
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