Business and Personal Finance Dictionary

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z 

• COMMON STOCK
  
  When you own common stock, you own shares in a corporation. Your shares represent ownership in the corporation and give you the right to vote for company's board of directors and benefit from its success through dividend payments or increases in share value. Unlike holders of preferred stock, you are not guaranteed dividend payments. However, common stock has historically produced a stronger long-term total return than any other investment category through a combination of dividend payments and increases in value (known as capital appreciation).
  
  Back