# Common stock

> Common stock — The residual class of shares — founders', employees' and option holders' — paid after creditors and after any preferred stock's preference. The class a 409A valuation prices.

Source: https://lopifi.com/glossary/common-stock
Part of: Lopifi — US GAAP books on autopilot, checked by a CPA (https://lopifi.com)

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**What is common stock?** In accounting, common stock means the residual class of shares — founders', employees' and option holders' — paid after creditors and after any preferred stock's preference. The class a 409A valuation prices.

## Words this system refuses for it

- ordinary shares in US copy
- equity (which also holds APIC and retained earnings)

- **Category:** Equity & financing
- **Specified in:** [Lexicon](https://lopifi.com/md/docs/domain/11-lexicon)
- **Rendered by:** [statement-of-changes-in-equity](https://lopifi.com/md/components/statement-of-changes-in-equity)
- **Related:** preferred-stock, 409a-valuation