Article on other languages:
 |
This article does not cite any references or sources. Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. (June 2009) |
Common stock is a form of corporate equity ownership, a type of security. It is called "common" to distinguish it from preferred stock. In the event of bankruptcy, common stock investors receive their funds after preferred stock holders, bondholders, creditors, etc. On the other hand, common shares on average perform better than preferred shares or bonds over time.
Common stock is usually voting shares, though not always. Holders of common stock are able to influence the corporation through votes on establishing corporate objectives and policy, stock splits, and electing the company's board of directors. Some holders of common stock also receive preemptive rights, which enable them to retain their proportional ownership in a company should it issue another stock offering.
Additional benefits from common stock include earning dividends and capital appreciation.
References
More about Common_stock: definition of common stock, common stock uncommon profits, common stock valuation, met life common stock, prudential financial inc common stock, common and preferred stock, preferred stock vs common stock, common stock prices, common monarch prior stock,