💼intro to business review

Common stock

Written by the Fiveable Content Team • Last updated August 2025
Written by the Fiveable Content Team • Last updated August 2025

Definition

Common stock represents ownership shares in a corporation, giving shareholders the right to vote on corporate matters and receive dividends. It is a primary means of equity financing for companies.

AP course connection

Topic 4.3: 4.3 Corporations: Limiting Your Liability

Unit 4

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