a common stock

USAGE SUMMARY

The phrase "a common stock" is correct and usable in written English.
It can be used in financial contexts to refer to shares of a company that are available for purchase by the general public. Example: "Investors often prefer to buy a common stock because it typically offers voting rights and the potential for dividends."

✓ Grammatically correct

News & Media

Formal & Business

Human-verified examples from authoritative sources

Exact Expressions

56 human-written examples

Ms. Stewart sold three million shares of Class A common stock to ValueAct, the statement said.

The New York Times

Wish we could get in on that We expect to list our Class A common stock under the symbol PNZI.

The New York Times

The Chicago Mercantile Exchange said today that its board had authorized steps to proceed with a possible initial public offering of its Class A common stock.

The New York Times

Broadcom said yesterday that it might issue about 1.23 million shares of Class A common stock for the transaction and pay as much as $3 million in cash.

The New York Times

Broadcom will issue about 5.5 million shares of its Class A common stock in exchange for all outstanding shares of NewPort, which is privately held.

The New York Times

The company, based in Middletown, N.Y., said it planned to sell 24 million shares of its Class A common stock for about $450 million.

The New York Times

Broadcom, which makes integrated circuits that speed broadband communications, said it would issue three million shares of its Class A common stock in exchange for Innovent.

The New York Times

Tyson, based in Springdale, said IBP shareholders would receive $27 for each share of IBP common stock, 50percentt in cash and 50percentt in Tyson Class A common stock.

The New York Times

Lucent said it would issue one share of Agere Class A common stock for every 92.768991 shares of Lucent common stock, and one Agere Class B common share for every 3.779818 shares of Lucent common stock.

The New York Times

We anticipate the initial public offering price of our Class A common stock will be between $35 and $42 per share.

The New York Times

Horizon, based in Chillicothe, Ohio, hopes to raise $125 million from an initial public offering of Class A common stock, according to a filing with the Securities and Exchange Commission.

The New York Times

Expert writing Tips

Best practice

When discussing financial matters, use "a common stock" to clearly denote publicly traded shares with standard voting rights. This term is well-understood in business and investment contexts.

Common error

Avoid using "a common stock" interchangeably with "preferred stock". Common stock represents basic ownership with voting rights, while preferred stock typically offers fixed dividends and priority in bankruptcy but may lack voting rights.

Linguistic Context

The phrase "a common stock" functions as a noun phrase, specifically identifying a type of equity ownership in a company. Ludwig AI confirms its usage in financial contexts.

Expression frequency: Very common

Frequent in

News & Media

56%

Formal & Business

22%

Science

9%

Less common in

Encyclopedias

4%

Reference

3%

Academic

3%

Ludwig's WRAP-UP

In summary, "a common stock" is a frequently used noun phrase referring to a standard type of equity ownership in a company. Ludwig AI analysis confirms its grammatical correctness and prevalence in financial and business contexts. It's important to differentiate this from preferred stock and to be aware of the associated investment risks. The phrase appears most often in news media and formal business communications, highlighting its relevance in financial discussions and reporting. Alternatives include "ordinary share" or "equity security".

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

Ordinary share

Replaces "common stock" with a more general term for equity shares.

Equity security

Emphasizes the equity aspect of the stock.

Voting share

Highlights the voting rights associated with the stock.

Publicly traded share

Focuses on the fact that the stock is available for trading on public markets.

Marketable security

Highlights the tradability and liquidity of the stock.

Proprietary share

Emphasizes ownership in a company.

Equity interest

Broader term referring to ownership stake.

General equity

Replaces "common stock" with a broader equity term.

Company stock

Refers to stock specifically issued by a company.

Basic stock

A simplified way of referring to equity in a firm.

FAQs

How is "a common stock" different from preferred stock?

A "a common stock" usually grants voting rights, while preferred stock often does not. Preferred stock typically offers fixed dividends and priority in bankruptcy, which is not generally the case with common stock.

What's another way to refer to "a common stock"?

You can use the term "ordinary share" as a synonym for "a common stock".

Why would a company issue different classes of common stock?

Companies issue different classes of stock, such as Class A and Class B, to allocate different voting rights. This allows founders or key shareholders to maintain control even with a minority stake. For example, Class B shares might have more voting power per share than Class A shares.

What are the risks associated with investing in "a common stock"?

Investing in "a common stock" carries risks such as market volatility, company-specific performance issues, and economic downturns. Unlike bondholders, common stockholders are last in line to receive assets during bankruptcy.