Common stock is a type of equity security that symbolizes ownership in a corporation. When individuals or entities hold common stock, they effectively become shareholders or owners of the company. Common stockholders have certain rights and privileges within the corporation, including the ability to participate in key corporate decisions and governance.
Common stock is a fundamental component of corporate finance and serves as a means for companies to raise capital by selling ownership stakes to investors. It allows individuals and institutions to participate in the growth and success of a corporation while also bearing the associated risks.