What is the definition of common stock?

Answer by  bigreddog (83)

To own shares of common stock is to own a portion of a corporate entity. Each share equals a percentage, usually a very small percentage, of a company. Of the types of stock, common stock has the least right of reimbursement in the event of a company going bankrupt.

Answer by  Latin4 (11170)

This is stock that is offered by a public corporation. You buy what the stock cost and you wown that percentage of the company.

Answer by  timerunning (805)

In business and finance, a share of stock means a share of ownership in a corporation. It is stock other than preferred stock.

Answer by  John (9008)

Common stock is the most basic form of stock. For many companies, it is the only kind that they offer. Some companies, however, offer what is called "preferred" stock, which carries extra rights (usually for voting on company officers) or pays different dividends.

Answer by  Melissa101010 (4405)

stock in a corporation in which the payouts are calculated upon a percentage of net profits, with distribution determined by the board of directors.

Answer by  Cali2307 (1337)

Most investors in the stock market, that are not purchasing mutual funds, are purchasing common stocks. Common stock gives you a share in a company's earnings. It also gives you voting rights, usually one vote per share. Common stockholder have a right to the assets of the company after preferred stock holders, bond holders, and debt holders.