What is common equity?
The bottom layer of the capital stack: the residual claim. Common equity is the first capital to absorb losses and the last to receive distributions, but it captures the upside after the senior claims are paid.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.