Common Equity (also referred to as Pari-Passu equity) means that investors have one-to-one (or equal) participation in each dollar invested and any potential profits or losses, i.e. no one investor or class of investors receives preference in how their capital is treated.

In real estate, after all cash flows or cash proceeds of a property have been returned to debtors and preferred equity holders, the remaining value is distributed equally among Common Equity holders.

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