Common Stock

Common stock are, as the name implies, the most commonly held form of stock in a corporation. They are also known as common shares or ordinary shares. The other form of stock available to the public is known as preferred stock.

Each share of common stock confers the owner the right to participate in and vote at stockholder's meetings. It also entitles the him or her to participate in the profits generated by the corporation through the distribution of dividends. However, in the event that the corporation undergoes liquidation, owners of common stock are the last to be paid, after bondholders, other debtholders and holders of preferred stock.

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