Common Equity

Common Equity - Common equity are a measure of how much equity is held by common stockholders of a company or corporation. This measurement disregards the preferred stockholders and is the equivalent of shareholders equity less preferred equity. A shareholder's equity is the total of all assets less the total of all liabilities of the company, divided by the number of shareholder's shares. In the case of a company, this is also known as Owner's Equity, Net Assets, or Net Worth. Preferred equity is a measure that only takes into account the preferred shareholders; therefore, it would be shareholders equity less common equity.