common equity


A measure of equity which only takes into account the common stockholders, and disregards the preferred stockholders. It is equal to shareholders' equity minus preferred equity.

For more information see Common Stock vs. Preferred Stock, and Stock Classes at

Use common equity in a sentence

You need to try and make sure that you have enough of a common equity so that you can get liquidity quickly.

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The common equity was a useful measure to be included in our report which we presented to management in the meeting.

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The financial statements of ABC Corporation are very useful to investors because it gives them information that allows them to easily calculate common equity.

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