A common share (or ordinary share) is the basic equity instrument representing a fractional ownership interest in a company, conferring proportional voting rights, dividend rights and liquidation proceeds. It is the standard form of equity and serves as the reference for equity value allocation. In complex capital structures involving preferred shares, convertible instruments, warrants and options, the value of a common share is determined by waterfall allocation — deducting the liquidation preferences and other senior rights before allocating the residual value to common shareholders.

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Example: a startup valued at CHF 20.0 million pre-money issues Series A preferred shares with a 1x non-participating liquidation preference. In a sale at CHF 12.0 million (below preference), preferred holders recover their full investment; common shareholders (founders and employees) receive nothing. At CHF 25.0 million, preferred holders receive their preference plus participate pro rata with common in the upside — illustrating the economic asymmetry between common and preferred shares.

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Hectelion values common shares and allocates equity value across share classes using waterfall models in PPA, fundraising and transaction contexts.