common stock: meaning, definition, pronunciation and examples

Common stock usually carries voting rights and dividends that are variable and not guaranteed. Preferred stock typically has no voting rights, pays a fixed dividend, and has priority over common stock in dividend payments and asset distribution if the company is liquidated.

No, for standard common stock, the maximum loss is limited to the amount you invested, as shareholders have limited liability. Your shares can become worthless, but you cannot be forced to pay more.

Not exactly. 'Shares' is a general term for units of ownership. 'Common stock' is a specific class of shares. A company may have multiple classes of shares (e.g., Class A common, Class B common, preferred), with 'common stock' being the most basic and prevalent class.

Issuing common stock raises equity capital without creating debt or obligatory interest payments. It dilutes existing ownership but improves the company's balance sheet by adding equity and does not require regular cash outflows for debt servicing.

A type of security that represents ownership in a corporation, giving the holder voting rights and a residual claim on corporate earnings and assets.

Common stock is usually formal, business, financial in register.

Common stock: in British English it is pronounced /ˈkɒmən stɒk/, and in American English it is pronounced /ˈkɑːmən stɑːk/. Tap the audio buttons above to hear it.