Common stock
Definition
A class of stock or securities which represents equity ownership in a corporation. Common stock typically comes with voting rights, permitting shareholders control over the company by electing a board of directors and voting on corporate matters. Common stock is last in priority, thus in the event of liquidation, holders of common stock must wait to be repaid until creditors and preferred shareholders are repaid first.
Definition from Nolo’s Plain-English Law Dictionary
A class of stock for which dividends (payouts) are calculated on a pro rata basis (according to the number of shares a shareholder owns). Holders of common stock have rights to vote on corporate matters and to receive a share of the assets if the corporation is liquidated. Compare: preferred stock
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:13 pm
