Common shares


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Common shares

In general, a public corporation has two types of shares, common and preferred. The common shares usually entitle the shareholders to vote at shareholders meetings. The common shares have a discretionary dividend.

Common Stock

Stock in a publicly-traded company that entitles holders to vote in the annual meeting, to elect the board of directors, and to generally exercise control of the company. While common stockholders are important in terms of their level of control, they have the least precedence in the event of liquidation. That is, if the company goes bankrupt, common stockholders do not receive any money until all bondholders, other debt holders, and preferred shareholders are paid in full. Likewise, common stock is not entitled to a guaranteed dividend. Common stock is also called ordinary stock.