Define: Common Stock

Common stock represents ownership in a corporation and typically grants shareholders voting rights and the opportunity to receive dividends.

Common stockholders have voting rights and are the last to receive dividends, while preferred stockholders have priority in receiving dividends and may have additional rights, but usually do not have voting rights.

Common stock can be purchased through a brokerage account or directly from the company through a direct stock purchase plan (DSPP).

Before investing in common stock, it is important to consider the company’s financial health, industry trends, management team, and overall market conditions.

Yes, investing in common stock carries the risk of losing some or all of your investment, as the value of stocks can fluctuate based on market conditions and company performance.

Yes, common stock can generally be sold at any time during market hours through a brokerage account.

Yes, common stockholders have the right to attend annual general meetings and vote on matters such as electing board members and approving major corporate decisions.

Yes, common stockholders have the right to file a lawsuit against a company if they believe their rights as shareholders have been violated, such as cases of fraud or mismanagement.

In the event of a company’s bankruptcy, common stockholders are typically the last to receive any remaining assets after all debts and obligations have been paid to creditors and preferred stockholders. As a result, common stockholders often face significant losses in such situations.