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common stock

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Understanding "Common Stock"

Definition: "Common stock" is a type of ownership in a company. When you own common stock, you own a piece of that company. This ownership allows you to share in the profits the company makes and gives you a say in important decisions, usually through voting in shareholder meetings.

Summary:

"Common stock" is an important term in finance that refers to a type of company ownership that allows you to share in profits and vote on company decisions.

Noun
  1. stock other than preferred stock; entitles the owner to a share of the corporation's profits and a share of the voting power in shareholder elections
    • over 40 million Americans invest in common stocks

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