Common Stock Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Common Stock, written in plain English, along with examples of how it is used.

What is Common Stock?

Common stock is the category of shares in a corporation.Common stock holders get dividend only if the company makes profits and since they participate in the profit and loss of the company they enjoy voting rights unlike preferred stock holders to whom a fixed percentage of dividend has to be paid and they dont enjoy voting rights.