A unit of ownership of a publicly held company (public corporation). It is a security issued by an entity representing ownership interest in its net assets (i.e., residual interest in its assets). Common shareholders usually have voting rights to elect management, participate in corporate decision-making (at the level of general assembly), and receive profit distributions (dividends).

An entity’s capital (equity capital/ share capital) is divided into shares, each corresponding to a small chunk of equity ownership, virtually with perpetual nature. In other words, common shares are perpetual instruments that do exist, and continue to do so, as long as the issuer is a going concern.

Common share (a term used in the United States) is also known as voting share and ordinary share outside of the United States. In the UK, common share is known as equity share or ordinary share.