Common stock

Definition Class of corporate stock which represents the residual ownership of the corporation. Holders of common stock have voting powers (to, for example, select directors of corporation and to participate in the profits of the corporation by way of dividends (but only after preferred stockholders have paid their dividends). Such stock is last to share in property of corporation on dissolution (after demands of creditors and senior security holders are satisfied)1

Black s Law Dictionary, page. 160 common stock