Common Shareholder

AAA

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.

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  1. Preference Shares

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

    Any event that brings material change to a company and affects ...
  3. Voting Right

    The right of a stockholder to vote on matters of corporate policy ...
  4. Preferred Stock

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

    1. A distribution of a portion of a company's earnings, decided ...
  6. Class A Shares

    A classification of common stock that may be accompanied by more ...
Related Articles
  1. What is the difference between preferred ...
    Investing

    What is the difference between preferred ...

  2. Stock Basics Tutorial
    Investing Basics

    Stock Basics Tutorial

  3. The Two Sides Of Dual-Class Shares
    Options & Futures

    The Two Sides Of Dual-Class Shares

  4. Knowing Your Rights As A Shareholder
    Investing Basics

    Knowing Your Rights As A Shareholder

comments powered by Disqus
Hot Definitions
  1. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  2. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  3. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  4. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  5. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  6. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
Trading Center