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common stock equivalent

 

Definitions from WordNet

Noun common stock equivalent has 1 sense
  1. common stock equivalent - preferred stock or convertible bonds or warrants that can be converted into common stock
    --1 is a kind of
    stock

Definitions from the Web

Term: Common Stock Equivalent

Description:

A common stock equivalent refers to any type of financial instrument or security that can be converted into common stock in a company. These instruments are considered as potential common shares and possess similar features and rights as ordinary shares of a company.

Senses:

Sense 1:

(Noun) - A financial instrument convertible into common stock.

For example:

  • The company issued convertible bonds, which serve as common stock equivalents.
  • Investors purchased preferred shares with the option to convert into common stock, making them common stock equivalents.

Sense 2:

(Adjective) - Referring to something with a similar value or significance as common stock.

For example:

  • These stock options are common stock equivalents, offering similar benefits as ordinary shares.
  • The employee's stock grant is a common stock equivalent, providing them with the same rights as shareholders.

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