The amount of shareholders’ (stockholders’) equity that is attributable (or corresponds) to common shares (common stock). Common equity is made up of common stock issued (measured at par value), additional paid-in capital, capital surplus (unused reserves), and retained earnings.

Common equity constitutes all the stock held by founders (and subscribers to issued stock) and management/ employees (those who have options/ ESOs to purchase common stock over the course of their employment with the issuing entity, as a form of compensation).