Common stock
Common stock, also referred to as
common shares, are, as the name implies, the most usual and commonly held form of
stock in a
corporation. The other type of shares that the public can hold in a corporation is known as
preferred stock. Common stock that has been re-purchased by the corporation is known as
treasury stock and is available for a variety of corporate uses.
Common stock typically has voting rights in corporate decision matters, though perhaps different rights from preferred stock. In order of priority in a
liquidation of a corporation, the owners of common stock are near the last. Dividends paid to the stockholders must be paid to preferred shares before being paid to common stock shareholders.
*
Preferred stock*
List of finance topics
