What Is Common Stock?
Common stock is the normal kind of share that most people buy. It gives you a piece of the company, a vote on big decisions, and a share of future growth.
What common stock gives you
- Ownership. You own part of the business.
- Votes. Usually one vote per share on things like who sits on the board.
- Growth. If the company grows, your shares can grow in value.
- Dividends. If the company pays a dividend, you get your share.
Common vs preferred stock
Preferred stock gets paid dividends first and gets money back first if the company is sold or fails. In return, preferred owners usually cannot vote and get less of the upside. Common shareholders are last in line, but have the most to gain.
Different classes of common stock
Some companies have more than one class. Alphabet has class A shares with votes and class C shares without. This lets founders keep control while selling shares to the public.
See it in real companies
Open a company to see what it sells and how it makes money.