Definition
Common stock represents ownership in a company and grants shareholders voting rights, dividends (if issued), and potential capital appreciation.
Related Services
Investment advisory, corporate finance, and equity management services assist businesses and investors in understanding common stock benefits and risks.
Problem and Application
Common stockholders are last in line for asset distribution during liquidation, making investments riskier than preferred stock. However, common stock offers higher potential returns through price appreciation and dividends.
Conclusion
Common stock is a fundamental part of equity markets. Investors should evaluate company performance and market conditions before investing.
