Common stock
Ordinary ownership shares, with a residual claim on assets after creditor claims and applicable preferred rights in liquidation.
Common stock in round numbers
Hypothetical: a founder invests US$8m in common stock. That investment amount is not a promised recovery. Returns depend on the business and share rights; ordinary dividends are subject to applicable law and preferred rights, rather than a universal requirement to repay all debt first.
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| Assets | Liabilities and equity | ||
|---|---|---|---|
| Cash | 4.20m | Accounts payable | 6.10m |
| Accounts receivable | 7.90m | Accrued expenses | 1.70m |
| Inventory | 4.70m | Total current liabilities | 7.80m |
| Total current assets | 16.80m | Long-term debt | 10.00m |
| Property, plant and equipment | 2.30m | Other non-current liabilities | 0.70m |
| Land | 11.00m | Total liabilities | 18.50m |
| Deposits and other | 2.00m | Owners’ equity | 13.60m |
| Total assets | 32.10m | Total liabilities and equity | 32.10m |
Terms Related to Common stock
Preferred equity · Cap table · Vesting · Dilution · All of the glossary