Type of security that serves as an evidence of proportionate ownership, imparts proportionate voting rights, and gives its holder unlimited proportionate claim on the assets and income of the firm (after the claims of lenders, and other obligations, are satisfied). Common stock constitutes the equity capital (also called risk capital) of the firm which is never paid back (redeemed), and is lost if the firm fails. Common stock usually has a par value (amount for which each share is sold for when first issued) but has no guaranteed value afterwards.
For more information see Common Stock vs. Preferred Stock, and Stock Classes at InvestorGuide.com.
Use common stock in a sentence
When you are buying a company's stock you're nearly always buying the common stock and that's what everyone's talking about when they talk about the stock price.
I suggested he take ownership of the common stock of the corporation to diversify his wealth and and invest in the company.
With all of Bob's Common stock in the company, he felt that he had some power over both the company's and his own financial situation.