Finance / July 9, 2018 / Alicia Franklin
Common stock is a unit of corporate ownership. If you hold common stock, you are only entitled to any residual equity in the corporation that is left after all of the claims of the corporation's creditors and preferred stockholders have been paid. Most shareholders hold common stock.
Debt to total asset ratio is the ratio indicating the percentage of total assets of the company financed from debt. It is a broad financial parameter used to measures what part of assets are served by liabilities (debt) signifying financial risk. It is one of the solvency ratios and helps in measuring how far the company is capable of meeting its long-term financial obligations.
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