A common stock is a type of security that represents ownership of a company's equity. Other terms that are synonymous with common stock include common share, ordinary share, and voting share.
Holders of common stock have the right to a portion of the company's profits and to exercise control over it by voting in board of director elections and on important corporate policies.

Owners of common stock can profit from the securities' capital appreciation. In general, common stock provides a higher return than preferred stock or bonds. The higher the returns, however, the higher the risks associated with such securities.

Common stock represents ownership in a corporation and is one of the primary types of securities investors can hold. When an individual purchases common stock, they become a shareholder in the company, acquiring a claim on a portion of its assets and earnings. Shareholders typically have voting rights in certain company matters, such as board member elections and major decisions.

Common stockholders are entitled to residual income, meaning they receive dividends if the company distributes profits, but only after preferred stockholders and bondholders have been paid. Unlike bonds or preferred stock, common stock does not guarantee a fixed income, and its value can fluctuate based on market demand and the company's performance.

Common stockholders also benefit from potential capital appreciation if the company's value increases over time. However, they also bear the risk of loss if the company faces financial challenges. In summary, common stock provides individuals with an ownership stake in a company, offering both potential rewards and risks based on the company's performance in the market.