Thursday, 25 October 2012

Common stock

Common stock – Securities that represent an ownershipinterest in a corporation. If the company has also issuedpreferred stock, both common and preferred have ownership rights. Common stockholders assume the greater risk, but generally exercise the greater control and may gain the greater award in the form of dividends and capital appreciation. The terms common stock and capital stock are often used interchangeably when the company has no preferred stock.