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Common Stock Definition

Common stock – n: finance/accounting term; equity or stock ownership of a company representing owners who have the lowest-priority, or a “residual,” interest in the company. In other words, in a liquidity event such as the sale of a company of all of its assets, common stockholders get paid last, only after the principal amounts owed senior debt-holders, subordinated debt-holders, and preferred stockholders are paid.

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Adapted from "The CompanyCrafters Entrepreneur's Dictionary"
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