Common Stock Law and Legal Definition

Common stock is a class of stock representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation. In case of liquidation, common stockholders have rights to a company's assets only after bondholders, other debt holders, and preferred stockholders have been satisfied. Common stock is often called capital stock if it is the corporation's only class of stock outstanding.