Common Stock

外汇网2021-06-19 14:05:35 183

A security that repsents ownership in a corporation. Holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, pferred shareholders and other debtholders have been paid in full.

In the U.K., these are called "ordinary shares".

Taobiz explains Common Stock

If the company goes bankrupt, the common stockholders will not receive their money until the creditors and pferred shareholders have received their respective share of the leftover assets. This makes common stock riskier than debt or pferred shares. The upside to common shares is that they usually outperform bonds and pferred shares in the long run.

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