Common stock

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.

Related terms

Dividends:

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Equity Financing:

The process of raising capital through the sale of shares in an enterprise, providing investors with ownership interests.

Corporate Governance:

The system of rules, practices, and processes by which a firm is directed and controlled, often involving shareholders' voting on key issues