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Financial Terms | |
Common Shares |
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Definition of Common SharesCommon SharesAre equity instruments that take no security against assets, have no fixed terms of repayment and pay no fixed dividends.
Related Terms:Book value per shareThe ratio of stockholder equity to the average number of common shares. Book value Cash flow per common shareCash flow from operations minus preferred stock dividends, divided by the Common stockThese are securities that represent equity ownership in a company. common shares let an Common stock/other equityValue of outstanding common shares at par, plus accumulated retained ConvertiblesSecurities (generally bonds or preferred shares) that are exchangeable at the option of the holder for common shares of the issuing firm. Dividends per shareDividends paid for the past 12 months divided by the number of common shares Earnings per ShareA measure of the earnings generated by a company on a per ![]() Market to Book RatioMeasure of the book value of a company on a per share basis. It is Price/earnings ratio (PE ratio)Shows the "multiple" of earnings at which a stock sells. Determined by dividing current American sharesSecurities certificates issued in the U.S. by a transfer agent acting on behalf of the foreign Authorized sharesNumber of shares authorized for issuance by a firm's corporate charter. Authorized sharesThe number of shares of stock that the company is legally authorized to sell. BOOK VALUE OF COMMON STOCKThe theoretical amount per share that each stockholder would receive if a company’s assets were sold on the balance sheet’s date. Book value equals: Common-base-year analysisThe representing of accounting information over multiple years as percentages common body of knowledge (CBK)the minimum set of knowledge needed by a person to function effectively in a particular field Common marketAn agreement between two or more countries that permits the free movement of capital ![]() common-size balance sheetBalance sheet that presents items as a percentage of total assets. common-size income statementIncome statement that presents items as a percentage of revenues. Common stockshares of ownership sold to the public. Common StockA financial security that represents an ownership claim on the common stockOwnership shares in a publicly held corporation. Common StockThat part of the capital stock of a corporation that carries voting rights and represents Common stock equivalentA convertible security that is traded like an equity issue because the optioned Common stock marketThe market for trading equities, not including preferred stock. Common stock ratiosRatios that are designed to measure the relative claims of stockholders to earnings Cost of Common StockThe rate of return required by the investors in the common stock of Earnings per share of common stockHow much profit a company made on each share of common stock this year. ![]() Fully diluted earnings per sharesEarnings per share expressed as if all outstanding convertible securities Issued sharesThe number of shares that the company has sold to the public. issued sharesshares that have been issued by the company. Management/closely held sharesPercentage of shares held by persons closely related to a company, as Outstanding sharesshares that are currently owned by investors. Outstanding sharesThe number of shares that are in the hands of the public. The difference between issued shares and outstanding shares is the shares held as treasury stock. outstanding sharesshares that have been issued by the company and are held by investors. Performance sharesshares of stock given to managers on the basis of performance as measured by earnings Preferred sharesPreferred shares give investors a fixed dividend from the company's earnings. And more Preferred SharesAre equity instruments that take no security against assets, have flexible terms of repayment and pay fixed or floating dividends. Return on Common Equity RatioA measure of the percentage return earned on the value of the SharesCertificates or book entries representing ownership in a corporation or similar entity Antidilutive effectResult of a transaction that increases earnings per common share (e.g. by decreasing the capital stockOwnership shares issued by a business corporation. A business Conversion ratioThe number of shares of common stock that the security holder will receive from Convertible DebentureAre debt instruments that are convertible into common or preferred shares, take secondary or no security against assets, have flexible terms of repayment and charge fixed or floating interest rates. Convertible priceThe contractually specified price per share at which a convertible security can be Deferred equityA common term for convertible bonds because of their equity component and the Employee stock fundA firm-sponsored program that enables employees to purchase shares of the firm's equityThe net worth of a company. This represents the ownership interest of the shareholders (common and preferred) of a company. For this reason, shares or stocks are often known as equities. Exchange offerAn offer by the firm to give one security, such as a bond or preferred stock, in exchange for income fundsMutual funds that seek regular income. This type of fund invests primarily in government, corporate and other types of bonds, debt securities, and other income producing securities and in certain circumstances can also hold common and preferred shares. Net WorthThe difference between the total assets and total liabilities of a company. Note: The value of the preferred shares is deducted from the net worth because the preferred's are usually redeemed before any value is paid to the common shareholders. Preferred stockA security that shows ownership in a corporation and gives the holder a claim, prior to the Rights offeringIssuance of "rights" to current shareholders allowing them to purchase additional shares, SeriesOptions: All option contracts of the same class that also have the same unit of trade, expiration date, stock optiona right allowing the holder to purchase shares of common stock during some future time frame and at a specified price Stock optionA right to purchase a specific maximum number of shares at a specific Stock repurchaseA firm's repurchase of outstanding shares of its common stock. Weighted Average Cost of Capital (WACC)A weighted average of the component costs of debt, preferred shares, and common equity. Also called the composite cost of capital. Related to : financial, finance, business, accounting, payroll, inventory, investment, money, inventory control, stock trading, financial advisor, tax advisor, credit. |