Common Stock

Discipline: Economics

Common Stocks, or common shares:

- represent a certain share of equity ownership in a corporation, and the right to receive dividents and vote,

- entail the first right to buy additional shares as they become available so as to allow their holder the maintain her proportional share in the corporation.

In a case of bankruptcy, common stockholders are paid after creditors and preferred stockholders.

Also see: preferred stock, stock

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