Common Stock

The most usual type of stock. Common stock is a a security that represents ownership in a corporation.

Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company’s assets only after bondholders, preferred shareholders and other debtholders have been paid in full.

Common stockholders are generally the last to get anything should a company go bankrupt.

Also see preferred stock.