What is common stock defined as in terms of share value?

Common stock is defined in terms of share value as the market price of shares multiplied by the number of shares. This captures the total market capitalization of the company's common stock, which reflects the value investors are willing to pay for the shares at any given time.

The market price represents the current trading price of each share in the stock market, and multiplying it by the number of shares outstanding gives a comprehensive view of the company's worth as determined by market participants. This definition aligns with how market value is typically assessed in finance, highlighting the importance of both the stock price and the number of shares when evaluating a company's equity. The other options do not accurately capture this common definition and instead reference elements related to accounting or capital structure, which do not reflect the market valuation of common stock.