Common Stock

Definition:

A security that represents an ownership interest in a corporation and comes with a package of rights, generally including rights to dividends, economic rights on a dissolution, and/or voting rights at shareholders’ meetings, or any combination thereof. Owners of Common Stock generally have the lowest Priority in the event of Bankruptcy and must wait for creditors and preferred shareholders to be paid before any portion of their investment can be returned.

Also known as Common Shares.

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