Common Stock

Common stock is a type of security that represents the ownership of equity in a company. It usually offers voting rights to the shareholder, such as the possibility to participate in choosing the board of directors or deciding corporate objectives.

Common stock shareholders also have the right to claim their portion from the company's profits through dividends or, in the case of liquidation (not always), the right to the assets. They are the last in line for receiving company's assets, and they will be paid only after preferred bondholders and creditors.