Common Stock

Common Stock

Common stock is the most common form of ownership share in a company and is what most people buy in a brokerage account. Owners usually get voting rights on certain decisions and a claim on future profits, but dividends are not guaranteed. If the company goes bankrupt, debt holders and preferred shareholders are paid first.

The company receives money only when the shares are first issued; later trades between investors do not raise new funds for the business.

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