Common Stock
Common stock is a type of security that represents ownership in a company. It is the most common form of stock and is typically traded on public stock exchanges. Common stock holders are entitled to dividends, voting rights, and other privileges. They also have the potential to benefit from capital appreciation if the stock price increases. Common stock holders are also exposed to the risk of loss if the stock price decreases.
History of Common Stock
The concept of common stock has been around since the 1600s. It was first used in the Dutch East India Company, which was the world’s first publicly traded company. The company issued shares of common stock to investors, who then had the right to vote on company decisions. This concept of common stock has been adopted by many companies since then.
Comparison of Common Stock to Other Types of Stock
| Type of Stock | Dividends | Voting Rights | Risk of Loss |
|---|---|---|---|
| Common Stock | Yes | Yes | Yes |
| Preferred Stock | Yes | No | Yes |
| Bond | No | No | No |
Summary
Common stock is a type of security that represents ownership in a company. It is the most common form of stock and is typically traded on public stock exchanges. Common stock holders are entitled to dividends, voting rights, and other privileges. They also have the potential to benefit from capital appreciation if the stock price increases. For more information on common stock, you can visit websites such as Investopedia, The Balance, and Yahoo Finance.
See Also
- Preferred Stock
- Bond
- Stock Exchange
- Dividend
- Voting Rights
- Capital Appreciation
- Risk of Loss
- Securities
- Investment
- Stock Market
