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 Says:
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:
Class A Shares
Class B Shares
Common Stock
Corporate Action
Dividend
Ordinary Shares
Preferred Stock
Voting Right |