COMMON-STOCK RATIO

common-stock ratio.The relationship of outstanding common stock to the corporation’s total capitalization. • The common-stock ratio measures the relative claims of stockholders to earnings (earnings per share and payout ratio), cash flow (cash flow per share), and equity (book value per share). Cf. PAYOUT RATIO.[Blacks Law 8th]

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COMMON-STOCK EQUIVALENT

common-stock equivalent.A security that is exchangeable for common stock, and thus is considered to be the same as common stock. • Common-stock equivalents include certain types of convertible securities, stock options, and warrants. [Blacks Law 8th]

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