What you can own
Common stock
Also called Ordinary shares
The standard form of share ownership, carrying votes and a residual claim on profits.
How it works
Common shareholders vote on directors and major decisions, receive dividends when declared, and rank last in a liquidation.
It is the instrument nearly all equity investing refers to, and the one indices are built from.
Related terms
- EquityA share of ownership in a company, giving you a claim on what is left after everyone else is paid.
- Preferred stockShares that rank ahead of common stock for dividends, usually without voting rights.
- ShareholderSomeone who owns shares in a company, and with them a vote and a claim on its profits.
- DividendA cash payment a company makes to its shareholders out of its profits.
More in What you can own
All 10 What you can own terms · The full glossary, 433 terms
Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.