Common Stock

Common stock is the basic ownership interest in a corporation. Common shareholders bear the ultimate risk of loss and receive the ultimate benefits of success, but they are not guaranteed dividends or assets upon dissolution. Common shareholders generally control management. They have the right to vote, the right to share in earnings of the corporation, a preemptive right to a proportionate share of any additional common stock issued, and the right to share in assets upon liquidation after satisfaction of creditors' claims and those of preferred shareholders.