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Ron Chernow

Investment Dictionary


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Common Shares (Stock)

 

Common stocks (shares) are ordinary shares - securities that represent a proportional ownership of the firm including all the material (like dividends) and non-material (voting) rights. Common shares are the traditional shares, and typically if there is not noted otherwise it is mostly probable that those are the common shares.

 

If you have found some stocks, it is most probable that those stocks are common. Another type of stock is preferred stock. Preferred stocks may have different characteristics, but preferred stocks are usually lacking voting right, while common shares always must have this attribute.

 

Read more about investment in stocks.

 






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