Stock Market Investors » Glossary of Stock Terms » What is Common Stock?

What is Common Stock?

The owners of a company possess common stock. The latter represents the major unit by which ownership in a corporation is recognized. The possession of a common stock gives its holders several rights. One of them is the right to vote on important issues concerning the operations of the company.

On the other hand, owners (also known as shareholders) have limited liability. This means that their liability is equal up to the value of the stock under their possession.

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