Home > Term: common stock equivalent
common stock equivalent
A security which is not, in form, a common stock but which usually contains provisions to enable its holder to become a common stockholder and which, because of its terms and circumstances under which it was issued, is in substance equivalent to a common stock. Convertible debt, convertible preferred stock, stock options and stock warrants meeting certain criteria are considered common stock equivalents.
- Part of Speech: noun
- Industry/Domain: Energy
- Category: Natural gas
- Company: AGA
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- JJD
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