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Trading and Investment Terms

Common Stock

Common stock is also called Capital Stock.
It’s a way to divide up the ownership of a company.

Common Stock gives the voting right to Shareholders.
Stockholders receive one vote per share. 
Stockholders also receive a copy of the corporation's annual report.

There are different varieties of stocks traded in the market. For example, value stocks are stocks that are lower in price with their fundamentals. 
Growth stocks are companies that tend to increase in value due to growing earnings.

If a company goes bankrupt, the common stockholders do not receive their money until the creditors, bondholders, and preferred shareholders have received their respective shares. 

In case of a company’s liquidation, holders of common stock own rights to the company’s assets. 
Since common shareholders are at the bottom of the priority ladder, it is very unlikely that they would receive compensation in the event of a liquidation.

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