common stock equivalent

common stock equivalent definition - finance
A convertible security that trades like its underlying common stock because the stock is trading substantially above its conversion price. Common stock equivalents also may be calculated for convertible bonds in order to calculate a companyÂ’s fully diluted earnings.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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