Common Stock

May 05, 2021

Securities that represent units of ownership in a public corporation.

Common stock owners usually have voting rights when it comes to selecting directors and in other matters, and they may benefit from receiving dividends on their holdings or by selling the stock at an increased price. But, in the event of liquidation in a company, creditors and bond and preferred stock holders take precedence over the claims of common stock holders.

Stock markets are volatile and can fluctuate significantly in response to company, industry, political, regulatory, market, or economic developments. Investing in stock involves risks, including the loss of principal.