Common Stock

Common stock represents ownership in a publicly traded company and entitles shareholders to voting rights and dividends (if issued). Shareholders benefit from capital appreciation when stock prices rise but also bear the risk of price declines.

Common stockholders are last in line for repayment if a company goes bankrupt, after bondholders and preferred stockholders. While riskier than bonds, common stock offers higher long-term growth potential, making it a core part of many investment portfolios.