SELIGMAN
---------------------------
COMMON STOCK
FUND, INC.
[GRAPHIC OMITTED]
MID-YEAR REPORT
JUNE 30, 2000
-------[]------
SEEKING FAVORABLE
CURRENT INCOME AND
LONG-TERM GROWTH
OF BOTH INCOME
AND CAPITAL
WITHOUT EXPOSING
CAPITAL TO
UNDUE RISK
[SELGIMAN LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
<PAGE>
SELIGMAN -- TIMES CHANGE... VALUES ENDURE
J. & W. SELIGMAN & Co. INCORPORATED IS A FIRM WITH A LONG TRADITION OF
INVESTMENT EXPERTISE, OFFERING A BROAD ARRAY OF INVESTMENT CHOICES TO HELP
TODAY'S INVESTORS SEEK THEIR LONG-TERM FINANCIAL GOALS.
[GRAPHIC OMITTED]
JAMES, JESSE, AND
JOSEPH SELIGMAN, 1870
TIMES CHANGE...
Established in 1864, Seligman has a history of providing financial services
marked not by fanfare, but rather by a quiet and firm adherence to financial
prudence. While the world has changed dramatically in the 136 years since
Seligman first opened its doors, the firm has continued to offer its clients
high-quality investment solutions through changing times.
In the late 19th century, as the country grew, Seligman helped finance the
westward expansion of the railroads, the construction of the Panama Canal, and
the launching of urban transit systems. In the first part of the 20th century,
as America became an industrial power, the firm helped fund the growing capital
needs of the nascent automobile and steel industries.
With the formation of Tri-Continental Corporation in 1929 -- today, the nation's
largest diversified publicly-traded closed-end investment company -- Seligman
began shifting its emphasis from investment banking to investment management.
Despite the stock market crash and ensuing depression, Seligman was convinced of
the importance that investment companies could have in building wealth for
individual investors and began managing its first mutual fund in 1930.
In the decades that followed, Seligman has continued to offer forward-looking
investment solutions, including equity funds that specialize in small companies,
technology, or international securities, and bond funds that focus on high-yield
issuers, US government bonds, or municipal securities.
...VALUES ENDURE
Seligman is proud of its distinctive past and of the traditional values that
continue to shape the firm's business decisions and investment judgment. While
much has changed over the years, the firm's commitment to providing prudent
investment management that seeks to build wealth for clients over time is an
enduring value that will guide Seligman in the new millennium.
TABLE OF CONTENTS
To the Shareholders ....................................................... 1
Interview With Your Portfolio Managers .................................... 2
Performance Overview ...................................................... 4
Portfolio Overview ........................................................ 6
Portfolio of Investments .................................................. 8
Statement of Assets and Liabilities ....................................... 9
Statement of Operations ................................................... 10
Statements of Changes in Net Assets ....................................... 11
Notes to Financial Statements ............................................. 12
Financial Highlights ...................................................... 15
Report of Independent Auditors ............................................ 17
Board of Directors ........................................................ 18
Executive Officers AND For More Information ............................... 19
Glossary of Financial Terms ............................................... 20
<PAGE>
TO THE SHAREHOLDERS
The first half of 2000 presented a challenging investment environment for
Seligman Common Stock Fund and for the stock market in general. During this
time, the Fund delivered a total return of -1.05% based on the net asset value
of Class A shares, while the Standard & Poor's 500 Composite Stock Price Index
(S&P 500) and the Lipper Growth & Income Funds Average declined -0.42% and
-0.24%, respectively. These lackluster returns were not surprising, given the
economic environment.
As early as June 1999, in an effort to slow the economy, the Federal Reserve
Board began raising interest rates. Over the course of this one-year period, the
federal funds rate was increased by 175 basis points, from 4.75%, before the
June 1999 Fed meeting, to 6.50%, following the most recent 50-basis-point
increase in May 2000. Despite these persistent tightening actions, the Fed's
efforts seemed to have little effect on the strong US economy. Investors soon
became concerned that the Fed would be unable to achieve its objective of an
economic "soft landing." Ongoing economic strength could also prompt the Fed to
continue raising interest rates, possibly significantly, which could adversely
affect corporate profits and stock prices.
Investor fear finally induced a significant correction in the Nasdaq Composite
Index (a technology-heavy index) in March. From March 10 through May 23, 2000,
this index lost 37% of its market value. During this correction, investors
abandoned some of the high-risk, and often speculative, technology stocks that
had been in demand for most of 1999. Meanwhile, stocks with solid earnings and
strong underlying fundamentals strengthened, while "concept stocks," those of
companies with interesting ideas but no earnings, fell out of favor. The market
also broadened, and small- and mid-cap stocks delivered strong relative
performance.
As the six months ended June 30, 2000, came to a close, the economy finally
showed signs of a slowdown. Growth and concept stocks temporarily regained some
momentum, erasing some of the damage that had occurred earlier in the quarter.
By the end of this six-month period, in which investors wavered between growth
and value stocks, the broad market averages delivered generally flat results.
Looking ahead, we believe the economy will continue to moderate. In such an
environment, we believe that the fundamentals of long-term investing will be
more important than ever, and that diversification will once again be crucial
for long-term success. Investors should work with their financial advisors to
ensure that their portfolios are appropriately balanced based upon their time
frames, their risk tolerances, and their unique financial situations.
While we feel that the economic slowdown and the corresponding moderation of the
stock market are healthy long-term trends, the investment environment may in
fact become more challenging. In 1999, many investors were successful simply by
buying stocks that appeared to be on upward price trends. The rest of 2000 may
present an environment that is more complex, making professional management and
diversification, such as is offered through mutual funds, crucial. Mutual funds
provide investors with an opportunity to obtain the services of money managers
who have years of investment experience and the support of research teams to
find the most promising opportunities. Mutual funds can also provide
diversification, which is important for long-term investment success.
Thank you for your continued support of Seligman Common Stock Fund. A discussion
with your Portfolio Managers, as well as the Fund's investment results,
portfolio of investments, and financial statements, follows this letter. We look
forward to serving your investment needs for many years to come.
By order of the Board of Directors,
/s/ William C. Morris
William C. Morris
Chairman
/s/ Brian T. Zino
Brian T. Zino
President
August 11, 2000
1
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGERS,
CHARLES C. SMITH, JR. AND RODNEY COLLINS
Q: HOW DID SELIGMAN COMMON STOCK FUND PERFORM DURING THE FIRST SIX MONTHS OF
2000?
A: During the first six months of 2000, Seligman Common Stock Fund posted a
total return of -1.05% based on the net asset value of Class A shares. At
the same time, the Lipper Growth & Income Funds Average returned -0.24% and
the Standard & Poor's 500 Composite Stock Price Index (S&P 500) returned
-0.42%.
Q: WHAT ECONOMIC AND MARKET FACTORS AFFECTED THE FUND'S PERFORMANCE DURING THE
FIRST HALF OF THE FISCAL YEAR?
A: The Federal Reserve Board has been raising interest rates, steadily and
somewhat aggressively, for one full year now in an attempt to place a drag
on the economy. At first, these actions seemed to have little or no effect
-- consumer confidence remained high, which fueled spending; unemployment
remained historically low, which nearly created a labor shortage; and price
increases in some areas of the economy seemed to be accelerating.
Toward the end of the first quarter of 2000, investors began to worry that
the Fed's actions thus far had been insufficient, forcing the Fed to
continue raising rates, which would be bad news for stocks. This growing
uncertainty finally toppled the most richly valued stocks -- mostly
technology stocks -- by the middle of March. The Nasdaq Composite Index (a
technology-heavy index) peaked at 5049 on March 10 and reached a low of 3165
on May 23, 2000, -- a 37% decline from peak to trough. During this two-month
period of steep losses in the technology sector, investors began to focus on
companies that could deliver solid earnings, rather than just on those whose
prices had been driven by momentum.
In June, evidence began to appear that the economy was in fact slowing, and
at the Fed's June meeting interest rates were left unchanged -- a
confirmation that the Fed was becoming convinced that its previous actions
were having the desired effect. This lifted some of the uncertainty from the
market, and technology stocks staged a recovery, while value-style stocks
lagged for the month.
Q: WHAT WAS YOUR INVESTMENT STRATEGY?
A: We continued to position the portfolio for total return, without exposing
capital to undue risk. At the beginning of the fiscal year, this meant that
we continued to underweight technology stocks because we believed that these
stocks were excessively valued. However, in March, when this sector
experienced a correction, we added to the Fund's technology portfolio. We
will continue to watch for opportunities to further increase the Fund's
weighting in this sector and, if we can find attractively valued stocks,
would like to achieve an increased weighting in technology by year end.
However, we will remain mindful of valuations, and will not pursue these
companies if we believe their prices are unreasonable. We believe that the
weakness in technology will
[PHOTO OMITTED]
GROWTH AND INCOME TEAM: (STANDING, FROM LEFT) AMY FUJII, JOHN ROTH, MELANIE
RAVENELL (ADMINISTRATIVE ASSISTANT), (SEATED, FROM LEFT) CHARLES SMITH
(PORTFOLIO MANAGER), RODNEY COLLINS (CO-PORTFOLIO MANAGER)
--------------------------------------------------------------------------------
...A TEAM APPROACH
Seligman Common Stock Fund is managed by the Seligman Growth and Income Team,
headed by Charles C. Smith, Jr. Mr. Smith and Rodney Collins, the Fund's
Co-Portfolio Manager, are assisted in the management of the Fund by seasoned
research professionals who are responsible for identifying companies in specific
industry groups that offer the greatest total return potential, consistent with
the Fund's objective.
--------------------------------------------------------------------------------
3
<PAGE>
INTERVIEW WITH YOUR PORTFOLIO MANAGERS,
CHARLES C. SMITH, JR. AND RODNEY COLLINS
continue through the end of the summer and into the fall, and we'll look for
opportunities to take advantage of any such weakness to buy high-quality
technology companies for the portfolio.
Q: WHAT SECTORS CONTRIBUTED POSITIVELY TO PORTFOLIO PERFORMANCE?
A: Seligman Common Stock Fund's overweighting in energy and utilities was
clearly a benefit during the first half of the year as the increase in oil
prices and increased demand for natural gas pushed stocks for these
companies higher. We believe that energy stocks will continue to do well as
the global economy continues to recover.
The Fund remained overweighted in financial stocks. Although these stocks
generally do not perform well in a rising-rate environment -- in fact the
sector as a whole was flat for the period -- the financial stocks in the
portfolio delivered generally strong performances, and they made a positive
contribution to the Fund's returns.
Q: WHAT SECTORS DETRACTED FROM PORTFOLIO PERFORMANCE?
A: The worst-performing market sectors during the first half of the year were
basic materials, consumer stocks, and telecommunications. Fortunately, the
Fund was underweighted in basic materials and consumer stocks. We were
overweighted in telecommunications, which hurt the Fund's performance
relative to its benchmarks, but we plan to remain overweighted because we
believe that these stocks represent good value for the long term.
Q: WHAT IS YOUR OUTLOOK?
A: We believe the economy and the stock market will continue to moderate, as we
began to see during the end of the first half of the year. In such an
environment, we feel that investors will once again focus on corporate
earnings and stock-price valuations. We have said for some time that the
exuberance in the market would necessarily have to abate, and that the
market would, at some point, once again focus on fundamentals. We believe
this is beginning to happen and that it should favor the Fund's investment
approach, which focuses on identifying well-managed companies that trade at
what we believe are attractive valuations relative to their earnings and
cash flow. However, market cycles do not end overnight. We expect relatively
high market volatility through the end of the year, although perhaps not to
the extent that we saw in 1999. We also believe that the market will
continue to broaden, which should benefit a well-diversified portfolio, such
as that of Seligman Common Stock Fund.
3
<PAGE>
PERFORMANCE OVERVIEW
INVESTMENT RESULTS PER SHARE
TOTAL RETURNS
FOR PERIODS ENDED JUNE 30, 2000
<TABLE>
<CAPTION>
AVERAGE ANNUAL
------------------------------------------------------------------
CLASS B CLASS C CLASS D
SINCE SINCE SINCE
SIX ONE FIVE 10 INCEPTION INCEPTION INCEPTION
MONTHS* YEAR YEARS YEARS 4/22/96 5/27/99 5/3/93
------ ----- ----- ----- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
CLASS A**
With Sales Charge (5.72)% (9.23)% 12.54% 12.03% n/a n/a n/a
Without Sales Charge (1.05) (4.71) 13.63 12.58 n/a n/a n/a
CLASS B**
With CDSC+ (6.27) (9.79) n/a n/a 11.26% n/a n/a
Without CDSC (1.40) (5.43) n/a n/a 11.59 n/a n/a
CLASS C**
With Sales Charge and CDSC (3.34) (7.23) n/a n/a n/a (2.41)% n/a
Without Sales Charge and CDSC (1.39) (5.41) n/a n/a n/a (0.70) n/a
CLASS D**
With 1% CDSC (2.37) (6.29) n/a n/a n/a n/a n/a
Without CDSC (1.39) (5.41) 12.77 n/a n/a n/a 11.86%
LIPPER GROWTH & INCOME FUNDS AVERAGE*** (0.24) 1.85 17.84 14.46 16.26++ 5.750 15.81+++
S&P 500*** (0.42) 7.24 23.80 17.80 23.09++ 12.120 20.60+++
</TABLE>
<TABLE>
<CAPTION>
NET ASSET VALUE DIVIDEND AND CAPITAL GAIN INFORMATION
FOR THE SIX MONTHS ENDED JUNE 30, 2000
DIVIDENDS
JUNE 30, 2000 DECEMBER 31, 1999 JUNE 30, 1999 PAID CAPITAL GAIN
-------------- ----------------- ------------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C>
CLASS A $14.55 $14.93 $16.66 $0.050 PAID $0.172oo
CLASS B 14.47 14.85 16.59 -- REALIZED 0.498
CLASS C 14.49 14.87 16.61 -- UNREALIZED 2.765@
Class D 14.49 14.87 16.61 --
</TABLE>
Performance data quoted represent changes in price and assume that all
distributions within the periods are invested in additional shares. The rates of
return will vary and the principal value of an investment will fluctuate.
Shares, if redeemed, may be worth more or less than their original cost. Past
performance is not indicative of future investment results.
----------
* Returns for periods of less than one year are not annualized.
** Return figures reflect any change in price per share and assume the
investment of dividend and capital gain distributions. Returns for Class A
shares are calculated with and without the effect of the initial 4.75%
maximum sales charge. Returns for Class A shares reflect the effect of the
service fee of up to 0.25% under the Administration, Shareholder Services
and Distribution Plan after January 1, 1993, only. Returns for Class B
shares are calculated with and without the effect of the maximum 5%
contingent deferred sales charge ("CDSC"), charged on redemptions made
within one year of the date of purchase, declining to 1% in the sixth year
and 0% thereafter. Returns for Class C shares are calculated with and
without the effect of the initial 1% maximum sales charge and the 1% CDSC
that is charged on redemptions made within 18 months of the date of
purchase. Returns for Class D shares are calculated with and without the
effect of the 1% CDSC, charged on redemptions made within one year of the
date of purchase.
*** The Lipper Growth &Income Funds Average and the S&P 500 are unmanaged
benchmarks that assume investment of dividends. The Lipper Growth &Income
Funds Average and the S&P 500 exclude the effect of fees and/or sales
charges. The monthly performance of the Lipper Growth &Income Funds
Average is used in the Performance Overview. Investors cannot invest
directly in an index or an average.
+ The CDSC is 5% for periods of one year or less, and 2% since inception.
++ From April 30, 1996.
+++ From April 30, 1993.
o From May 31, 1999.
oo Represents realized capital gains from 1999, which were paid to
shareholders on June 22, 2000.
@ Represents the per share amount of net
unrealized appreciation of portfolio securities as of June 30, 2000.
4
<PAGE>
PERFORMANCE OVERVIEW
GROWTH OF AN ASSUMED $10,000 INVESTMENT
CLASS A SHARES CLASS B SHARES
JUNE 30, 1990 TO JUNE 30, 2000 APRIL 22, 1996+ TO JUNE 30, 2000
[LINE CHART OMITTED] [LINE CHART OMITTED]
CLASS A CLASS B
6/30/90 9526 4/22/96 10000
7865 6/30/96 10326
8702 9/30/96 10394
10131 12/31/96 10921
6/30/91 9924 3/31/97 11064
10691 6/30/97 12742
11308 9/30/97 13588
11497 12/31/97 13388
6/30/92 11570 3/31/98 14904
11891 6/30/98 14830
12536 9/30/98 13655
13144 12/31/98 15595
6/30/93 13460 3/31/99 15399
13799 6/30/99 16741
14398 9/30/99 15026
13722 12/31/99 16057
6/30/94 13794 3/31/00 16003
14337 6/30/00 15833
14126
15328 $15,833**
6/30/95 16442 Total Value at June 30, 2000
17482
18105 $10,000
19023 Initial Amount Invested
6/30/96 19697
19855
20900
21220
6/30/97 24492
26158
25828
28812
6/30/98 28725
26495
30320
30000
6/30/99 32687
29365
31476
31394
06/30/00 31146
$31,146
Total Value at June 30, 2000
$9,526*
Initial Amount Invested
CLASS C SHARES CLASS D SHARES
MAY 27, 1999+ TO JUNE 30, 2000 MAY 3, 1993+ TO JUNE 30, 2000
[LINE CHART OMITTED] [LINE CHART OMITTED]
CLASS C CLASS D
5/27/99 9901 5/3/93 10000
6/30/99 10388 10000
8/31/99 9831 6/30/93 10256
10/31/99 9970 10484
12/31/99 9964 10908
2/29/00 8999 10348
4/30/00 9777 6/30/94 10372
6/30/00 9825 10747
10555
$9,825** 11427
Total Value at June 30, 2000 6/30/95 12241
12988
$9,901* 13423
Initial Amount Invested 14083
6/30/96 14542
14638
15380
15581
6/30/97 17945
19136
18865
21000
6/30/98 20897
19243
21987
21698
6/30/99 23602
21173
22640
22548
6/30/00 22324
$22,324
Total Value at June 30, 2000
$10,000
Initial Amount Invested
These charts reflect the growth of a $10,000 investment for a 10-year period for
Class A shares and since inception for Class B, Class C, and Class D shares,
assuming that all distributions within the periods are invested in additional
shares. Since the measured periods vary, the charts are plotted using different
scales and are not comparable.
----------
* Net of the 4.75% or 1% maximum initial sales charge for Class A or Class C
shares, respectively.
** Excludes the effects of the 2% or 1% CDSC for Class B or Class C shares,
respectively.
+ Inception date.
5
<PAGE>
PORTFOLIO OVERVIEW
DIVERSIFICATION OF NET ASSETS
JUNE 30, 2000
<TABLE>
<CAPTION>
PERCENT OF
NET ASSETS
------------------
JUNE 30, DEC. 31,
ISSUES COST VALUE 2000 1999
------ -------------- -------------- ------- -------
<S> <C> <C> <C> <C> <C>
COMMON STOCKS:
Aerospace ................................... -- -- -- -- 0.5
Automotive and Related ...................... 2 $ 7,242,556 $ 7,169,680 1.0 2.2
Chemicals ................................... 1 6,402,983 5,026,875 0.7 1.0
Communications .............................. 5 61,522,587 56,829,671 7.9 7.6
Communications Equipment .................... 2 17,236,863 19,097,850 2.7 2.5
Computer and Business Services .............. 11 124,505,737 154,581,016 21.4 19.0
Consumer Goods and Services ................. 5 33,815,724 35,438,000 4.9 11.1
Drugs and Health Care ....................... 9 68,022,488 87,460,844 12.1 8.9
Electric and Gas Utilities .................. 2 16,431,834 21,624,350 3.0 2.6
Electric Equipment .......................... -- -- -- -- 4.9
Electronics ................................. -- -- -- -- 0.8
Energy ...................................... 5 35,452,822 58,978,975 8.2 6.7
Finance and Insurance ....................... 11 103,308,851 141,098,482 19.5 18.0
Machinery and Industrial Equipment .......... 2 27,346,730 50,735,250 7.0 2.9
Office Equipment ............................ 1 16,406,193 14,672,000 2.0 1.2
Paper and Forest Products ................... 1 5,674,151 4,873,250 0.7 1.1
Publishing .................................. -- -- -- -- 0.8
Retail Trade ................................ 5 37,596,214 40,743,841 5.6 5.4
Transportation .............................. -- -- -- -- 0.2
................................................ -- ------------- ------------ ----- -----
62 560,965,733 698,330,084 96.7 97.4
SHORT-TERM HOLDING AND
OTHER ASSETS LESS LIABILITIES ............... 1 24,150,264 24,150,264 3.3 2.6
-- ------------- ------------ ----- -----
NET ASSETS ...................................... 63 $585,115,997 $722,480,348 100.0 100.0
== ============ ============ ===== =====
</TABLE>
LARGEST INDUSTRIES
JUNE 30, 2000
[BAR CHART OMITTED]
COMPUTER AND BUSINESS SERVICES $154,581,016
FINANCE AND INSURANCE $141,098,482
DRUGS AND HEALTH CARE $ 87,460,844
ENERGY $ 58,978,975
COMMUNICATIONS $ 56,829,671
6
<PAGE>
PORTFOLIO OVERVIEW
LARGEST PORTFOLIO CHANGES
DURING PAST SIX MONTHS
SHARES
------------------------
HOLDINGS
ADDITIONS INCREASE 6/30/00
--------- -------- -------
Agilent Technologies .................. 110,000 110,000
Chubb ................................. 156,000 276,000
Coastal ............................... 188,000 188,000
Guidant ............................... 156,000 156,000
Home Depot ............................ 84,900 84,900
Oracle ................................ 43,600 95,600(1)
Pitney Bowes .......................... 176,800 366,800
Sprint ................................ 130,000 130,000
Sun Microsystems ...................... 60,000 60,000
WorldCom(2) ........................... 90,900 323,400
SHARES
------------------------
HOLDINGS
REDUCTIONS DECREASE 6/30/00
---------- -------- -------
Bestfoods ............................. 185,000 --
Clorox ................................ 230,000 --
ConAgra ............................... 480,000 --
DaimlerChrysler ....................... 110,000 --
Hewlett-Packard ....................... 70,000 --
Honeywell International ............... 125,000 --
Intel ................................. 66,200 183,800
International Business Machines ....... 89,600 75,400
Mellon Bank ........................... 290,000 --
Sara Lee .............................. 375,000 --
Largest portfolio changes from the previous period to the current period are
based on cost of purchases and proceeds from sales of securities.
----------
(1) Includes 52,000 shares received as a result of a 2-for-1 stock split.
(2) Formerly, MCI WorldCom.
LARGEST PORTFOLIO HOLDINGS
JUNE 30, 2000
SECURITY VALUE
-------- -----------
General Electric ...................... $31,259,400
Microsoft ............................. 27,621,206
Intel ................................. 24,566,019
Applied Materials ..................... 22,491,816
Cisco Systems ......................... 21,594,272
United Technologies ................... 19,475,850
Wal-Mart Stores ....................... 18,267,125
Bank of New York ...................... 17,730,450
American International Group .......... 17,225,500
Chubb ................................. 16,974,000
7
<PAGE>
PORTFOLIO OF INVESTMENTS
JUNE 30, 2000
SHARES VALUE
------ --------------
COMMON STOCKS 96.7%
AUTOMOTIVE AND RELATED 1.0%
Ford Motor 160,800 $ 6,914,400
Visteon 21,054 255,280
--------------
7,169,680
--------------
CHEMICALS 0.7%
duPont (E.I.) de Nemours 114,900 5,026,875
--------------
COMMUNICATIONS 7.9%
AT&T 326,200 10,316,075
SBC Communications 334,220 14,455,015
Sprint 130,000 6,630,000
Verizon Communications 170,000 10,582,500
WorldCom* 323,400 14,846,081
--------------
56,829,671
--------------
COMMUNICATIONS EQUIPMENT 2.7%
Lucent Technologies 142,400 8,437,200
Nortel Networks (Canada) 156,200 10,660,650
--------------
19,097,850
--------------
COMPUTER AND BUSINESS SERVICES 21.4%
Agilent Technologies* 110,000 8,112,500
America Online* 97,900 5,164,225
Applied Materials* 248,100 22,491,816
Cisco Systems* 339,900 21,594,272
Dell Computer* 283,500 13,988,953
Electronic Data Systems 225,200 9,289,500
Intel 183,800 24,566,019
International Business Machines 75,400 8,261,013
Microsoft* 345,400 27,621,206
Oracle* 95,600 8,033,387
Sun Microsystems* 60,000 5,458,125
--------------
154,581,016
--------------
CONSUMER GOODS AND SERVICES 4.9%
Anheuser-Busch 105,700 7,894,469
Coca-Cola 114,900 6,599,569
Gillette 116,200 4,059,737
PepsiCo 275,600 12,246,975
Procter & Gamble 81,000 4,637,250
--------------
35,438,000
--------------
DRUGS AND HEALTH CARE 12.1%
Abbott Laboratories 193,000 8,600,563
American Home Products 229,700 13,494,875
Baxter International 114,900 8,078,906
Bristol-Myers Squibb 112,250 6,538,563
Guidant* 156,000 7,722,000
Johnson & Johnson 128,700 13,111,312
Merck 146,600 11,233,225
Pfizer 229,700 11,025,600
Schering-Plough 151,600 7,655,800
--------------
87,460,844
--------------
ELECTRIC AND GAS UTILITIES 3.0%
Unicom 206,700 7,996,706
Williams Companies (The) 326,900 13,627,644
--------------
21,624,350
--------------
ENERGY 8.2%
BP Amoco (ADRs)
(United Kingdom) 174,600 9,875,813
Coastal 188,000 11,444,500
Exxon Mobil 193,000 15,150,500
Royal Dutch Petroleum
(Netherlands) 193,000 11,881,562
Schlumberger 142,400 10,626,600
--------------
58,978,975
--------------
FINANCE AND INSURANCE 19.5%
American General 174,600 10,650,600
American International Group 146,600 17,225,500
Bank of America 294,265 12,653,395
Bank of New York 381,300 17,730,450
Chubb 276,000 16,974,000
Citigroup 271,100 16,333,775
Fannie Mae 128,700 6,716,531
Hartford Financial Services Group 229,700 12,848,844
Lincoln National 340,000 12,282,500
Merrill Lynch 101,000 11,615,000
Morgan (J.P.) 55,100 6,067,887
--------------
141,098,482
--------------
MACHINERY AND INDUSTRIAL EQUIPMENT 7.0%
General Electric 589,800 31,259,400
United Technologies 330,800 19,475,850
--------------
50,735,250
--------------
OFFICE EQUIPMENT 2.0%
Pitney Bowes 366,800 14,672,000
--------------
PAPER AND FOREST PRODUCTS 0.7%
Mead 193,000 4,873,250
--------------
RETAIL TRADE 5.6%
Costco Wholesale* 87,100 2,877,022
CVS 277,500 11,100,000
Home Depot 84,900 4,239,694
May Department Stores 177,500 4,260,000
Wal-Mart Stores 317,000 18,267,125
--------------
40,743,841
--------------
TOTAL COMMON STOCKS
(Cost $560,965,733) 698,330,084
SHORT-TERM HOLDING 4.3%
(Cost $31,000,000) 31,000,000
--------------
TOTAL INVESTMENTS 101.0%
(Cost $591,965,733) 729,330,084
OTHER ASSETS LESS LIABILITIES (1.0)% (6,849,736
----- --------------
NET ASSETS 100.0% $ 722,480,348
===== ==============
----------
* Non-income producing security.
See Notes to Financial Statements.
8
<PAGE>
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
ASSETS:
Investments, at value:
Common stocks (cost $560,965,733) ............. $698,330,084
Short-term holding (cost $31,000,000) ....... 31,000,000 $729,330,084
------------
Cash ....................................................... 428,371
Receivables for securities sold ............................ 891,640
Receivable for interest and dividends ...................... 567,058
Receivable for Capital Stock sold .......................... 160,865
Investment in, and expenses prepaid
to, shareholder service agent ............................ 113,737
Other ...................................................... 20,325
------------
TOTAL ASSETS ............................................... 731,512,080
------------
LIABILITIES:
Payable for securities purchased ........................... 7,091,429
Payable for Capital Stock repurchased ...................... 706,765
Accrued expenses and other ................................. 1,233,538
------------
TOTAL LIABILITIES .......................................... 9,031,732
------------
NET ASSETS ................................................. $722,480,348
============
COMPOSITION OF NET ASSETS:
Capital Stock, at par ($0.50 par value;
500,000,000 shares authorized;
49,677,659 shares outstanding):
Class A .................................................. $21,565,727
Class B .................................................. 1,177,939
Class C .................................................. 235,873
Class D .................................................. 1,859,291
Additional paid-in capital ................................. 536,020,324
Dividends in excess of net investment income ............... (820,655)
Undistributed net realized gain ............................ 25,077,498
Net unrealized appreciation of investments ................. 137,364,351
------------
NET ASSETS ................................................. $722,480,348
============
NET ASSET VALUE PER SHARE:
CLASS A ($627,664,045 / 43,131,453 shares) ................. $14.55
======
CLASS B ($34,101,269 / 2,355,878 shares) ................... $14.47
======
CLASS C ($6,835,115 / 471,747 shares) ...................... $14.49
======
CLASS D ($53,879,919 / 3,718,581 shares) ................... $14.49
======
----------
See Notes to Financial Statements.
9
<PAGE>
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 2000
INVESTMENT INCOME:
Dividends (net of foreign taxes withheld
of $44,367) ............................ $5,096,230
Interest ................................. 746,022
----------
TOTAL INVESTMENT INCOME .................. $5,842,252
EXPENSES:
Management fee ........................... 2,375,024
Distribution and service fees ............ 1,279,585
Shareholder account services ............. 599,392
Shareholder reports and communications ... 82,392
Custody and related services ............. 61,520
Registration ............................. 46,661
Auditing and legal fees .................. 41,195
Directors' fees and expenses ............. 8,486
Miscellaneous ............................ 10,915
-----------
TOTAL EXPENSES ............................................. 4,505,170
-----------
NET INVESTMENT INCOME ...................................... 1,337,082
NET REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized gain on investments ......... 24,758,269
Net change in unrealized appreciation
of investments ......................... (36,947,873)
-----------
NET LOSS ON INVESTMENTS .................................... (12,189,604)
-----------
DECREASE IN NET ASSETS FROM OPERATIONS ..................... $(10,852,522)
===========
----------
See Notes to Financial Statements.
10
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
JUNE 30, DECEMBER 31,
2000 1999
------------ ------------
OPERATIONS:
Net investment income .......................... $1,337,082 $11,745,510
Net realized gain on investments ............... 24,758,269 73,439,275
Net change in unrealized appreciation
of investments ............................... (36,947,873) (54,646,312)
------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS .............................. (10,852,522) 30,538,473
------------ ------------
DISTRIBUTIONS TO SHAREHOLDERS:
Net investment income:
Class A ...................................... (2,179,737) (10,622,834)
Class B ...................................... -- (304,424)
Class C ...................................... -- (11,524)
Class D ...................................... -- (606,895)
Net realized gain on investments:
Class A ...................................... (7,393,939) (54,859,234)
Class B ...................................... (403,004) (3,295,415)
Class C ...................................... (78,509) (240,249)
Class D ...................................... (644,948) (6,096,530)
------------ ------------
DECREASE IN NET ASSETS FROM DISTRIBUTIONS ...... (10,700,137) (76,037,105)
------------ ------------
CAPITAL SHARE TRANSACTIONS:
Net proceeds from sales of shares .............. 12,482,439 34,457,740
Investment of dividends ........................ 1,224,455 6,726,109
Exchanged from associated Funds ................ 25,851,410 227,652,546
Value of shares issued in payment of
gain distributions ........................... 5,950,591 46,902,138
------------ ------------
Total .......................................... 45,508,895 315,738,533
------------ ------------
Cost of shares repurchased ..................... (63,193,175) (110,774,095)
Exchanged into associated Funds ................ (42,455,568) (236,149,912)
------------ ------------
Total .......................................... (105,648,743) (346,924,007)
------------ ------------
DECREASE IN NET ASSETS
FROM CAPITAL SHARE TRANSACTIONS .............. (60,139,848) (31,185,474)
------------ ------------
DECREASE IN NET ASSETS ......................... (81,692,507) (76,684,106)
NET ASSETS:
Beginning of period ............................ 804,172,855 880,856,961
------------ ------------
END OF PERIOD (including (dividends
in excess of)/undistributed net
investment income of $(820,655)
and $22,000, respectively) ................... $722,480,348 $804,172,855
============ ============
----------
See Notes to Financial Statements.
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS
1. MULTIPLE CLASSES OF SHARES -- Seligman Common Stock Fund, Inc. (the "Fund")
offers four classes of shares. Class A shares are sold with an initial sales
charge of up to 4.75% and a continuing service fee of up to 0.25% on an annual
basis. Class A shares purchased in an amount of $1,000,000 or more are sold
without an initial sales charge but are subject to a contingent deferred sales
charge ("CDSC") of 1% on redemptions within 18 months of purchase. Class B
shares are sold without an initial sales charge but are subject to a
distribution fee of 0.75% and a service fee of up to 0.25% on an annual basis,
and a CDSC, if applicable, of 5% on redemptions in the first year of purchase,
declining to 1% in the sixth year and 0% thereafter. Class B shares will
automatically convert to Class A shares on the last day of the month that
precedes the eighth anniversary of their date of purchase. The Fund began
offering Class C shares on May 27, 1999. Class C shares are sold with an initial
sales charge of up to 1% and are subject to a distribution fee of up to 0.75%
and a service fee of up to 0.25% on an annual basis, and a CDSC, if applicable,
of 1% imposed on redemptions made within 18 months of purchase. Class D shares
are sold without an initial sales charge but are subject to a distribution fee
of up to 0.75% and a service fee of up to 0.25% on an annual basis, and a CDSC,
if applicable, of 1% imposed on redemptions made within one year of purchase.
The four classes of shares represent interests in the same portfolio of
investments, have the same rights and are generally identical in all respects
except that each class bears its separate distribution and certain other
class-specific expenses, and has exclusive voting rights with respect to any
matter on which a separate vote of any class is required.
2. SIGNIFICANT ACCOUNTING POLICIES -- The financial statements have been
prepared in conformity with accounting principles generally accepted in the
United States of America which require management to make certain estimates and
assumptions at the date of the financial statements. The following summarizes
the significant accounting policies of the Fund:
A. SECURITY VALUATION -- Investments in common stocks and convertible issues
are valued at current market values or, in their absence, at fair values
determined in accordance with procedures approved by the Board of Directors.
Securities traded on an exchange are valued at last sales prices or, in
their absence and in the case of over-the-counter securities, at the mean of
bid and asked prices. Short-term holdings maturing in 60 days or less are
valued at amortized cost.
B. FOREIGN CURRENCY TRANSACTIONS -- The books and records of the Fund are
maintained in USdollars. The market value of investment securities, other
assets and liabilities denominated in foreign currencies are translated into
US dollars at the daily rate of exchange as reported by a pricing service.
Purchases and sales of investment securities, income, and expenses are
translated into USdollars at the rate of exchange prevailing on the
respective dates of such transactions.
The Fund separates that portion of the results of operations resulting from
changes in the foreign exchange rates from the fluctuations arising from
changes in the market prices of securities held in the portfolio. Similarly,
the Fund separates the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of portfolio
securities sold during the period.
C. FEDERAL TAXES -- There is no provision for federal income tax. The Fund has
elected to be taxed as a regulated investment company and intends to
distribute substantially all taxable net income and net gain realized.
D. SECURITY TRANSACTIONS AND RELATED INVESTMENT INCOME -- Investment
transactions are recorded on trade dates. Identified cost of investments
sold is used for both financial statement and federal income tax purposes.
Dividends receivable and payable are recorded on ex- dividend dates, except
that certain dividends from foreign securities where the ex-dividend dates
may have passed are recorded as soon as the Fund is informed of the
dividend. Interest income is recorded on an accrual basis.
E. MULTIPLE CLASS ALLOCATIONS -- All income, expenses (other than
class-specific expenses), and realized and unrealized gains or losses are
allocated daily to each class of shares based upon the relative value of
shares of each class. Class-specific expenses, which include distribution
and service fees and any other items that are specifically attributable to a
particular class, are charged directly to such class. For the six months
ended June 30, 2000, distribution and service fees were the only
class-specific expenses.
F. DISTRIBUTIONS TO SHAREHOLDERS -- The treatment for financial statement
purposes of distributions made to shareholders during the year from net
investment income or net realized gains may differ from their ultimate
treatment for federal income tax purposes. These differences are caused
primarily by differences in the timing of the recognition of certain
components of income, expense, or realized capital gain for federal income
tax purposes. Where such differences are permanent in nature, they are
reclassified in the components of net assets based on their ultimate
characterization for federal income tax purposes. Any such reclassification
will have no effect on net assets, results of operations, or net asset
values per share of the Fund.
12
<PAGE>
NOTES TO FINANCIAL STATEMENTS
3. PURCHASES AND SALES OF SECURITIES -- Purchases and sales of portfolio
securities, excluding US Government obligations and short-term investments, for
the six months ended June 30, 2000, amounted to $118,692,170 and $191,221,138,
respectively.
At June 30, 2000, the cost of investments for federal income tax purposes
was substantially the same as the cost for financial reporting purposes, and the
tax basis gross unrealized appreciation and depreciation of portfolio securities
amounted to $166,716,083 and $29,351,732, respectively.
4. SHORT-TERM INVESTMENTS -- At June 30, 2000, the Fund owned short-term
investments which matured in less than seven days.
5. MANAGEMENT FEE, DISTRIBUTION SERVICES, AND OTHER TRANSACTIONS -- J. & W.
Seligman & Co. Incorporated (the "Manager") manages the affairs of the Fund and
provides the necessary personnel and facilities. Compensation of all officers of
the Fund, all directors of the Fund who are employees or consultants of the
Manager, and all personnel of the Fund and the Manager is paid by the Manager.
The Manager receives a fee, calculated daily and payable monthly, equal to 0.65%
per annum of the first $1 billion of the Fund's average daily net assets, 0.60%
per annum of the next $1 billion of the Fund's average daily net assets, and
0.55% per annum of the Fund's average daily net assets in excess of $2 billion.
The management fee reflected in the Statement of Operations represents 0.65% per
annum of the Fund's average daily net assets.
Seligman Advisors, Inc. (the "Distributor"), agent for the distribution of
the Fund's shares and an affiliate of the Manager, received concessions of
$13,716, from sales of Class A shares. Commissions of $103,037 and $29,711 were
paid to dealers from sales of Class A and Class C shares, respectively.
The Fund has an Administration, Shareholder Services and Distribution Plan
(the "Plan") with respect to distribution of its shares. Under the Plan, with
respect to Class A shares, service organizations can enter into agreements with
the Distributor and receive a continuing fee of up to 0.25% on an annual basis,
payable quarterly, of the average daily net assets of the Class A shares
attributable to the particular service organizations for providing personal
services and/or the maintenance of shareholder accounts. The Distributor charges
such fees to the Fund pursuant to the Plan. For the six months ended June 30,
2000, fees incurred under the Plan aggregated $778,857 or 0.25% per annum of the
average daily net assets of Class A shares.
Under the Plan, with respect to Class B shares, Class C shares, and Class D
shares, service organizations can enter into agreements with the Distributor and
receive a continuing fee for providing personal services and/or the maintenance
of shareholder accounts of up to 0.25% on an annual basis of the average daily
net assets of the Class B, Class C, and Class D shares for which the
organizations are responsible; and, for Class C and Class D shares, fees for
providing other distribution assistance of up to 0.75% on an annual basis of
such average daily net assets. Such fees are paid monthly by the Fund to the
Distributor pursuant to the Plan.
With respect to Class B shares, a distribution fee of 0.75% on an annual
basis of average daily net assets is payable monthly by the Fund to the
Distributor; however, the Distributor has sold its rights to this fee to a third
party (the "Purchaser"), which provides funding to the Distributor to enable it
to pay commissions to dealers at the time of the sale of the related Class B
shares.
For the six months ended June 30, 2000, fees incurred under the Plan,
equivalent to 1% per annum of the average daily net assets of Class B, Class C,
and Class D shares, amounted to $178,412, $26,716, and $295,600, respectively.
The Distributor is entitled to retain any CDSC imposed on certain
redemptions of Class A and Class C shares occurring within 18 months of purchase
and on redemptions of Class D shares occurring within one year of purchase. For
the six months ended June 30, 2000, such charges amounted to $6,689.
The Distributor has sold its rights to collect any CDSC imposed on
redemptions of Class B shares to the Purchaser. In connection with the sale of
its rights to collect any CDSC and the distribution fees with respect to Class B
shares described above, the Distributor receives payments from the Purchaser
based on the value of Class Bshares sold. The aggregate of such payments
retained by the Distributor, for the six months ended June 30, 2000, amounted to
$3,338.
Seligman Services, Inc., an affiliate of the Manager, is eligible to receive
commissions from certain sales of shares of the Fund, as well as distribution
and service fees pursuant to the Plan. For the six months ended June 30, 2000,
Seligman Services, Inc. received commissions of $10,458 from the sales of shares
of the Fund. Seligman Services, Inc. also received distribution and service fees
of $164,918, pursuant to the Plan.
Seligman Data Corp., which is owned by the Fund and certain associated
investment companies, charged the Fund at cost $599,392 for shareholder account
services. The Fund's investment in Seligman Data Corp. is recorded at a cost of
$22,506.
13
<PAGE>
NOTES TO FINANCIAL STATEMENTS
Certain officers and directors of the Fund are officers or directors of the
Manager, the Distributor, Seligman Services, Inc., and/or Seligman Data Corp.
The Fund has a compensation arrangement under which directors who receive
fees may elect to defer receiving such fees. Directors may elect to have the
deferred fees accrue interest or earn a return based on the performance of the
Fund or other funds in the Seligman Group of Investment Companies. The cost of
such fees and earnings accrued thereon is included in directors' fees and
expenses, and the accumulated balance thereof at June 30, 2000, of $151,902 is
included in other liabilities. Deferred fees and related accrued earnings are
not deductible for federal income tax purposes until such amounts are paid.
6. COMMITTED LINE OF CREDIT -- The Fund is a participant in a joint $825 million
committed line of credit that is shared by substantially all open-end funds in
the Seligman Group of Investment Companies. The Fund's borrowings are limited to
10% of its net assets. Borrowings pursuant to the credit facility are subject to
interest at a rate equal to the overnight federal funds rate plus 0.50%. The
Fund incurs a commitment fee of 0.10% per annum on its share of the unused
portion of the credit facility. The credit facility may be drawn upon only for
temporary purposes and is subject to certain other customary restrictions. The
credit facility commitment expires in June 2001, but is renewable annually with
the consent of the participating banks. For the six months ended June 30, 2000,
the Fund did not borrow from the credit facility.
7. CAPITAL SHARE TRANSACTIONS -- The Fund has authorized 500,000,000 shares of
$0.50 par value Capital Stock. Transactions in shares of Capital Stock were as
follows:
CLASS A
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ---------- ----------- ------------
Sale of shares ........ 407,377 $5,871,973 887,890 $14,060,961
Investment of
dividends ........... 85,065 1,224,455 377,181 5,949,510
Exchanged from
associated Funds .... 1,248,479 18,247,018 12,321,378 197,449,028
Shares issued in
payment of gain
distributions ....... 349,646 5,062,911 2,476,076 38,015,344
----------- ---------- ----------- ------------
Total ................. 2,090,567 30,406,357 16,062,525 255,474,843
----------- ---------- ----------- ------------
Cost of shares
repurchased ......... (3,219,329) (46,381,904) (5,263,262) (83,137,919)
Exchanged into
associated Funds .... (1,625,943) (23,308,342) (13,102,909) (209,212,249)
----------- ---------- ----------- ------------
Total ................. (4,845,272) (69,690,246) (18,366,171) (292,350,168)
----------- ---------- ----------- ------------
Decrease .............. (2,754,705) $(39,283,889) (2,303,646) $(36,875,325)
=========== ========== =========== ============
CLASS B
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ---------- ----------- ------------
Sale of shares ......... 164,575 $2,331,522 592,378 $9,363,534
Investment of
dividends ............ -- -- 15,918 250,377
Exchanged from
associated Funds ..... 346,184 4,947,753 546,804 8,552,742
Shares issued in
payment of gain
distributions ........ 20,968 302,091 197,475 3,013,341
----------- ---------- ----------- ------------
Total .................. 531,727 7,581,366 1,352,575 21,179,994
----------- ---------- ----------- ------------
Cost of shares
repurchased .......... (309,466) (4,433,060) (381,174) (5,949,115)
Exchanged into
associated Funds ..... (688,901) (9,692,411) (381,160) (5,868,263)
----------- ---------- ----------- ------------
Total .................. (998,367) (14,125,471) (762,334) (11,817,378)
----------- ---------- ----------- ------------
Increase
(Decrease) ........... (466,640) $(6,544,105) 590,241 $9,362,616
=========== ========== =========== ============
CLASS C
-----------------------------------------------------
SIX MONTHS ENDED May 27, 1999*
JUNE 30, 2000 To December 31, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
----------- ---------- ----------- ------------
Sale of shares ......... 205,840 $2,954,862 302,005 $4,761,445
Investment of
dividends ............ -- -- 727 10,981
Exchanged from
associated Funds ..... 28,151 418,510 3,953 58,258
Shares issued in
payment of gain
distributions ........ 5,031 72,548 15,185 229,899
----------- ---------- ----------- ------------
Total .................. 239,022 3,445,920 321,870 5,060,583
----------- ---------- ----------- ------------
Cost of shares
repurchased .......... (16,753) (240,551) (2,597) (39,412)
Exchanged into
associated Funds ..... (47,699) (685,641) (22,096) (332,945)
----------- ---------- ----------- ------------
Total .................. (64,452) (926,192) (24,693) (372,357)
----------- ---------- ----------- ------------
Increase ............... 174,570 $2,519,728 297,177 $4,688,226
=========== ========== =========== ============
* Commencement of offering of shares.
CLASS D
-----------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
JUNE 30, 2000 DECEMBER 31, 1999
------------------------ --------------------------
SHARES AMOUNT SHARES AMOUNT
---------- ---------- ----------- ------------
Sale of shares ........ 92,252 $1,324,082 396,631 $6,271,800
Investment of
dividends ........... -- -- 32,682 515,241
Exchanged from
associated Funds .... 156,181 2,238,129 1,356,192 21,592,518
Shares issued in
payment of gain
distributions ....... 35,578 513,041 369,261 5,643,554
---------- ---------- ----------- ------------
Total ................. 284,011 4,075,252 2,154,766 34,023,113
---------- ---------- ----------- ------------
Cost of shares
repurchased ......... (850,952) (12,137,660) (1,378,622) (21,647,649)
Exchanged into
associated Funds .... (620,911) (8,769,174) (1,313,666) (20,736,455)
---------- ---------- ----------- ------------
Total ................. (1,471,863) (20,906,834) (2,692,288) (42,384,104)
---------- ---------- ----------- ------------
Decrease .............. (1,187,852) $(16,831,582) (537,522) $(8,360,991)
========== ========== =========== ============
14
<PAGE>
FINANCIAL HIGHLIGHTS
The tables below are intended to help you understand each Class's financial
performance for the past five and one-half years or from its inception if less
than five and one-half years. Certain information reflects financial results for
a single share of a Class that was held throughout the periods shown. Per share
amounts are calculated using average shares outstanding. "Total return" shows
the rate that you would have earned (or lost) on an investment in each Class,
assuming you reinvested all your dividends and capital gain distributions. Total
returns do not reflect any sales charges and are not annualized for periods of
less than one year.
<TABLE>
<CAPTION>
CLASS A
----------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ------------------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ................ $14.93 $15.77 $15.92 $14.89 $14.19 $12.12
-------- -------- -------- -------- -------- --------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income ............................... 0.03 0.23 0.28 0.30 0.35 0.36
Net realized and unrealized gain
on investments ...................................... (0.19) 0.39 2.32 3.18 1.81 3.00
Net realized and unrealized gain
from foreign currency transactions .................. -- -- -- (0.07) -- 0.01
-------- -------- -------- -------- -------- --------
TOTAL FROM INVESTMENT OPERATIONS .................... (0.16) 0.62 2.60 3.41 2.16 3.37
-------- -------- -------- -------- -------- --------
LESS DISTRIBUTIONS:
Dividends from net investment income ................ (0.05) (0.23) (0.28) (0.32) (0.34) (0.36)
Distributions from net realized
capital gains ..................................... (0.17) (1.23) (2.47) (2.06) (1.12) (0.94)
-------- -------- -------- -------- -------- --------
TOTAL DISTRIBUTIONS ................................. (0.22) (1.46) (2.75) (2.38) (1.46) (1.30)
-------- -------- -------- -------- -------- --------
NET ASSET VALUE, END OF PERIOD ...................... $14.55 $14.93 $15.77 $15.92 $14.89 $14.19
======== ======== ======== ======== ======== ========
TOTAL RETURN: (1.05)% 3.82% 17.40% 23.58% 15.44% 28.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) ............ $627,664 $684,874 $760,176 $734,635 $656,260 $614,400
Ratio of expenses to average net assets ............. 1.13%+ 1.13% 1.11% 1.13% 1.15% 0.93%
Ratio of net investment income to
average net assets ................................ 0.47%+ 1.49% 1.73% 1.83% 2.36% 2.56%
Portfolio turnover rate ............................. 16.62% 70.72% 93.67% 106.02% 56.10% 46.08%
</TABLE>
----------
See footnotes on page 16.
15
<PAGE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B CLASS C
---------------------------------------------------- ---------------------
SIX MONTHS YEAR ENDED DECEMBER 31, 4/22/96* SIX MONTHS 5/27/99*
ENDED ---------------------------- TO ENDED TO
6/30/00 1999 1998 1997 12/31/96 6/30/00 12/31/99
-------- ------- ------- ------ ----- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ............. $14.85 $15.71 $15.88 $14.87 $14.80 $14.87 $16.06
------- ------- ------- ------- ------ ------ -------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ..................... (0.02) 0.11 0.16 0.17 0.15 (0.02) (0.01)
Net realized and unrealized gain (loss)
on investments ................................. (0.19) 0.38 2.31 3.17 1.20 (0.19) (0.07)
Net realized and unrealized loss
from foreign currency transactions ............. -- -- -- (0.07) -- -- --
------- ------- ------- ------- ------ ------ -------
TOTAL FROM INVESTMENT OPERATIONS ................. (0.21) 0.49 2.47 3.27 1.35 (0.21) (0.08)
------- ------- ------- ------- ------ ------ -------
LESS DISTRIBUTIONS:
Dividends from net investment income ............. -- (0.12) (0.17) (0.20) (0.16) -- (0.08)
Distributions from net realized capital gains .... (0.17) (1.23) (2.47) (2.06) (1.12) (0.17) (1.03)
------- ------- ------- ------- ------ ------ -------
TOTAL DISTRIBUTIONS .............................. (0.17) (1.35) (2.64) (2.26) (1.28) (0.17) (1.11)
------- ------- ------- ------- ------ ------ -------
NET ASSET VALUE, END OF PERIOD ................... $14.47 $14.85 $15.71 $15.88 $14.87 $14.49 $14.87
======= ======= ======= ======= ====== ====== =======
TOTAL RETURN: (1.40)% 2.97% 16.48% 22.59% 9.21% (1.39)% 0.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) ......... $34,101 $41,928 $35,073 $19,568 $6,451 $6,835 $4,420
Ratio of expenses to average net assets .......... 1.88%+ 1.89% 1.87% 1.89% 1.92%+ 1.88%+ 1.91%+
Ratio of net investment income (loss)
to average net assets .......................... (0.28)%+ 0.73% 0.97% 1.07% 1.55%+ (0.28)%+ (0.08)%+
Portfolio turnover rate .......................... 16.62% 70.72% 93.67% 106.02% 56.10%++ 16.62% 70.72%**
</TABLE>
<TABLE>
<CAPTION>
CLASS D
-------------------------------------------------------------------------
SIX MONTHS YEAR ENDED DECEMBER 31,
ENDED ----------------------------------------------------------
6/30/00 1999 1998 1997 1996 1995
------- ------- ------- ------- ------- ----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE DATA:
NET ASSET VALUE, BEGINNING OF PERIOD ................... $14.87 $15.73 $15.89 $14.87 $14.16 $12.07
------- ------- ------- ------- ------- ----------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income (loss) ........................... (0.02) 0.11 0.16 0.17 0.24 0.24
Net realized and unrealized gain
on investments ....................................... (0.19) 0.38 2.32 3.18 1.80 3.00
Net realized and unrealized gain (loss)
from foreign currency transactions ................... -- -- -- (0.07) -- 0.01
------- ------- ------- ------- ------- ----------
TOTAL FROM INVESTMENT OPERATIONS ....................... (0.21) 0.49 2.48 3.28 2.04 3.25
------- ------- ------- ------- ------- ----------
LESS DISTRIBUTIONS:
Dividends from net investment income ................... -- (0.12) (0.17) (0.20) (0.21) (0.22)
Distributions from net realized capital gains .......... (0.17) (1.23) (2.47) (2.06) (1.12) (0.94)
------- ------- ------- ------- ------- ----------
TOTAL DISTRIBUTIONS .................................... (0.17) (1.35) (2.64) (2.26) (1.33) (1.16)
------- ------- ------- ------- ------- ----------
NET ASSET VALUE, END OF PERIOD ......................... $14.49 $14.87 $15.73 $15.89 $14.87 $14.16
======= ======= ======= ======= ======= ==========
TOTAL RETURN: (1.39)% 2.97% 16.55% 22.66% 14.58% 27.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) ............... $53,880 $72,950 $85,608 $80,896 $63,938 $46,564
Ratio of expenses to average net assets ................ 1.88%+ 1.89% 1.87% 1.89% 1.91% 1.72%
Ratio of net investment income (loss) to
average net assets ................................... (0.28)%+ 0.73% 0.97% 1.07% 1.61% 1.80%
Portfolio turnover rate ................................ 16.62% 70.72% 93.67% 106.02% 56.10% 46.08%
</TABLE>
----------
* Commencement of offering of shares. ** For the year ended December 31, 1999.
+ Annualized.
++ For the year ended December 31, 1996.
See Notes to Financial Statements.
16
<PAGE>
REPORT OF INDEPENDENT AUDITORS
THE BOARD OF DIRECTORS AND SHAREHOLDERS,
SELIGMAN COMMON STOCK FUND, INC.:
We have audited the accompanying statement of assets and liabilities of Seligman
Common Stock Fund, Inc., including the portfolio of investments, as of June 30,
2000, and the related statements of operations for the six months then ended,
and of changes in net assets for the six months then ended and for the year
ended December 31, 1999, and the financial highlights for each of the periods
presented. These financial statements and financial highlights are the
responsibility of the Fund's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned as of June 30, 2000, by correspondence with the Fund's
custodian and brokers; where replies were not received from brokers, we
performed other auditing procedures. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of
Seligman Common Stock Fund, Inc. as of June 30, 2000, the results of its
operations for the six months then ended, and the changes in its net assets and
the financial highlights for all the respective stated periods in conformity
with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
New York, New York
August 11, 2000
17
<PAGE>
BOARD OF DIRECTORS
JOHN R. GALVIN (2, 4)
DIRECTOR, RAYTHEON COMPANY
DEAN EMERITUS, Fletcher School of Law and Diplomacy
at Tufts University
ALICE S. ILCHMAN (3, 4)
TRUSTEE, Committee for Economic Development
CHAIRMAN, The Rockefeller Foundation
FRANK A. MCPHERSON (2, 4)
DIRECTOR, Kimberly-Clark Corporation
DIRECTOR, Baptist Medical Center
DIRECTOR, Conoco Inc.
JOHN E. MEROW (2, 4)
DIRECTOR, Commonwealth Industries, Inc.
TRUSTEE, New York-Presbyterian Hospital
RETIRED CHAIRMAN AND SENIOR PARTNER,
Sullivan & Cromwell, Law Firm
BETSY S. MICHEL (2, 4)
TRUSTEE, The Geraldine R. Dodge Foundation
WILLIAM C. MORRIS (1)
CHAIRMAN
CHAIRMAN OF THE BOARD,
J. & W. Seligman & Co. Incorporated
CHAIRMAN, Carbo Ceramics Inc.
DIRECTOR, Kerr-McGee Corporation
JAMES C. PITNEY (3, 4)
RETIRED PARTNER, Pitney, Hardin, Kipp & Szuch, Law Firm
JAMES Q. RIORDAN (3, 4)
DIRECTOR, KeySpan Energy Corporation
TRUSTEE, Committee for Economic Development
RICHARD R. SCHMALTZ (1)
MANAGING DIRECTOR, DIRECTOR OF INVESTMENTS,
J. & W. Seligman & Co. Incorporated
TRUSTEE EMERITUS, Colby College
ROBERT L. SHAFER (3, 4)
RETIRED VICE PRESIDENT, Pfizer Inc.
JAMES N. WHITSON (2, 4)
DIRECTOR AND CONSULTANT, Sammons Enterprises, Inc.
DIRECTOR, C-SPAN
DIRECTOR, CommScope, Inc.
BRIAN T. ZINO (1)
PRESIDENT
PRESIDENT, J. & W. Seligman & Co. Incorporated
CHAIRMAN, Seligman Data Corp.
DIRECTOR, ICI Mutual Insurance Company
MEMBER OF THE BOARD OF GOVERNORS,
Investment Company Institute
DIRECTOR EMERITUS
Fred E. Brown
DIRECTOR AND CONSULTANT,
J. & W. Seligman & Co. Incorporated
----------------
Member: (1) Executive Committee
(2) Audit Committee
(3) Director Nominating Committee
(4) Board Operations Committee
18
<PAGE>
EXECUTIVE OFFICERS
WILLIAM C. MORRIS
CHAIRMAN
BRIAN T. ZINO
PRESIDENT
CHARLES C. SMITH, JR.
VICE PRESIDENT
LAWRENCE P. VOGEL
VICE PRESIDENT AND TREASURER
FRANK J. NASTA
SECRETARY
FOR MORE INFORMATION
MANAGER
J. & W. Seligman & Co. Incorporated
100 Park Avenue
New York, NY 10017
GENERAL COUNSEL
Sullivan & Cromwell
INDEPENDENT AUDITORS
Deloitte & Touche llp
GENERAL DISTRIBUTOR
Seligman Advisors, Inc.
100 Park Avenue
New York, NY 10017
SHAREHOLDER SERVICE AGENT
Seligman Data Corp.
100 Park Avenue
New York, NY 10017
IMPORTANT TELEPHONE NUMBERS
(800) 221-2450 Shareholder Services
(800) 445-1777 Retirement Plan Services
(212) 682-7600 Outside the United States
(800) 622-4597 24-Hour Automated Telephone Access Service
19
<PAGE>
GLOSSARY OF FINANCIAL TERMS
CAPITAL GAIN DISTRIBUTION -- A payment to mutual fund shareholders of profits
realized on the sale of securities in a fund's portfolio.
CAPITAL APPRECIATION/DEPRECIATION -- An increase or decrease in the market value
of a mutual fund's portfolio securities, which is reflected in the net asset
value of the fund's shares. Capital appreciation/depreciation of an individual
security is in relation to the original purchase price.
COMPOUNDING -- The change in the value of an investment as shareholders receive
earnings on their investment's earnings. For example, if $1,000 is invested at a
fixed rate of 7% a year, the initial investment is worth $1,070 after one year.
If the return is compounded, second year earnings will not be based on the
original $1,000, but on the $1,070, which includes the first year's earnings.
CONTINGENT DEFERRED SALES CHARGE (CDSC) -- Depending on the class of shares
owned, a fee charged by a mutual fund when shares are sold back to the fund. The
CDSC expires after a fixed time period.
DIVIDEND -- A payment by a mutual fund, usually derived from the fund's net
investment income (dividends and interest less expenses).
DIVIDEND YIELD -- A measurement of a fund's dividend as a percentage of the
maximum offering price or net asset value.
EXPENSE RATIO -- The cost of doing business for a mutual fund, expressed as a
percent of the fund's net assets.
INVESTMENT OBJECTIVE -- The shared investment goal of a fund and its
shareholders.
MANAGEMENT FEE -- The amount paid by a mutual fund to its investment advisor(s).
MULTIPLE CLASSES OF SHARES -- Although an individual mutual fund invests in only
one portfolio of securities, it may offer investors several purchase options
which are "classes" of shares. Multiple classes permit shareholders to choose
the fee structure that best meets their needs and goals. Generally, each class
will differ in terms of how and when sales charges and certain fees are
assessed.
NATIONAL ASSOCIATION OF SECURITIES DEALERS, INC. (NASD) -- A self-regulatory
body with authority over firms that distribute mutual funds.
NET ASSET VALUE (NAV) PER SHARE -- The market worth of one fund share, obtained
by adding a mutual fund's total assets (securities, cash, and any accrued
earnings), subtracting liabilities, and dividing the resulting net assets by the
number of shares outstanding.
OFFERING PRICE -- The price at which a mutual fund's share can be purchased. The
offering price per share is the current net asset value plus any sales charge.
PORTFOLIO TURNOVER -- A measure of the trading activity in a mutual fund's
investment portfolio that reflects how often securities are bought and sold.
PROSPECTUS -- The legal document describing a mutual fund to all prospective
shareholders. It contains information required by the Securities and Exchange
Commission (SEC), such as a fund's investment objective and policies, services,
investment restrictions, how shares are bought and sold, fund fees and other
charges, and the fund's financial highlights.
SEC YIELD -- SEC Yield refers to the net income earned by a fund during a recent
30-day period. This income is annualized and then divided by the maximum
offering price per share on the last day of the 30-day period. The SEC Yield
formula reflects semiannual compounding.
SECURITIES AND EXCHANGE COMMISSION -- The primary US federal agency that
regulates the registration and distribution of mutual fund shares.
STATEMENT OF ADDITIONAL INFORMATION -- A document that contains more detailed
information about an investment company and that supplements the prospectus. It
is available at no charge upon request.
TOTAL RETURN -- A measure of a fund's performance encompassing all elements of
return. Reflects the change in share price over a given period and assumes all
distributions are taken in additional fund shares. The Average Annual Total
Return represents the average annual compounded rate of return for the periods
presented.
YIELD ON SECURITIES -- For bonds, the current yield is the coupon rate of
interest, divided by the purchase price. For stocks, the yield is measured by
dividing dividends paid by the market price of the stock.
----------
Adapted from the Investment Company Institute's 2000 MUTUAL FUND FACT BOOK.
20
<PAGE>
SELIGMAN ADVISORS, INC.
AN AFFILIATE OF
[SELIGMAN LOGO]
J. & W. SELIGMAN & CO.
INCORPORATED
ESTABLISHED 1864
100 PARK AVENUE, NEW YORK, NY 10017
www.seligman.com
THIS REPORT IS INTENDED ONLY FOR THE INFORMATION OF SHAREHOLDERS OR THOSE WHO
HAVE RECEIVED THE OFFERING PROSPECTUS COVERING SHARES OF CAPITAL STOCK OF
SELIGMAN COMMON STOCK FUND, INC., WHICH CONTAINS INFORMATION ABOUT THE SALES
CHARGES, MANAGEMENT FEE, AND OTHER COSTS. PLEASE READ THE PROSPECTUS CAREFULLY
BEFORE INVESTING OR SENDING MONEY.
EQCS3 6/00 [RECYCLE LOGO] Printed on Recycled Paper
