Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.Simple Definition
The regular type of stock most people buy. Comes with voting rights.
Why It Matters
When someone says 'I own stock in Apple,' they mean common stock. This is what 99% of individual investors buy. You get voting rights, potential price appreciation, and maybe dividends. If the company succeeds wildly, you benefit fully. If it goes bankrupt, you're last in line (after bondholders and preferred shareholders).
Key Points
- Voting rights let you vote on board members, executive pay, and major decisions at shareholder meetings
- Dividends on common stock are variable - company can raise, lower, or eliminate them anytime
- Some companies have multiple share classes (like Google's GOOGL vs GOOG) with different voting rights
Learn More
What Is a Stock?
Get a complete explanation with examples, key takeaways, and a quiz to test your knowledge.
Related Terms
Common Questions
The regular type of stock most people buy. Comes with voting rights. When someone says 'I own stock in Apple,' they mean common stock. This is what 99% of individual investors buy.
When someone says 'I own stock in Apple,' they mean common stock. This is what 99% of individual investors buy. You get voting rights, potential price appreciation, and maybe dividends. If the company succeeds wildly, you benefit fully. If it goes bankrupt, you're last in line (after bondholders and preferred shareholders).
Voting rights let you vote on board members, executive pay, and major decisions at shareholder meetings
Dividends on common stock are variable - company can raise, lower, or eliminate them anytime
Some companies have multiple share classes (like Google's GOOGL vs GOOG) with different voting rights