Common Stock
Also known as: common shares · ordinary shares · common equity
DEFINITION
Common stock represents fractional ownership of a corporation. Holders typically get one vote per share on board elections and major corporate matters, share in profits via dividends (when declared), and receive what remains after creditors and preferred shareholders in liquidation. Most US-listed shares you buy on an exchange are common stock. Dual-class structures (Class A, Class B) split voting power — read the prospectus carefully.
WHY IT MATTERS FOR RETAIL INVESTORS
Common stock is what most retail investors own without thinking about it. The voting rights only matter at the margin (annual meeting, M&A vote), but the residual claim is the entire upside story. Dual-class structures (Google, Meta, Snap, etc.) mean your shares may have 1/10th or 1/20th the voting weight of insider supervoting shares — check the proxy statement for the actual breakdown.
OFFICIAL SEC SOURCE
https://www.sec.gov/about/answers/commonstock.htm ↗RELATED TERMS
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