Business and Personal Finance Dictionary

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• COMMON SHARES - COMMON STOCK
  
  Securities that represent equity ownership in a company. Common shares topically allow an investor to vote on such matters as the election of board of directors. They also give the holder a share in a company's profits via dividend payments or the capital appreciation of the security. When people talk about a company's stock, they usually mean common stock. When you own common stock in a company, you share in its success or failure. As part owner, you vote on important policy issues, such as picking the board of directors. If the company prospers, you may get part of the profits, called a dividend. Also, the value of your share of the company many go up; common stock generally has the most potential for growth. However, that value also can drop if the company does poorly, and if it goes bankrupt common stockholders are the last to receive any payment.
  
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