Common Stock refers to a type of equity share that signifies the ownership stake of shareholders in a corporation. Shareholders of common stock hold voting rights, usually one vote per share, allowing them to participate in decisions such as electing board members or approving major corporate policies. Additionally, common stockholders have a residual claim on the company's assets and earnings, meaning they are entitled to what is left after all debts, liabilities, and preferred stock dividends have been settled. However, in the event of a liquidation, common stockholders are the last to be paid, after creditors and preferred shareholders.

For example, when a company like "Easy Month End Inc." issues common stock, purchasing those shares makes one a partial owner of the company. Common Stock is different from preferred stock, which usually guarantees dividends but lacks voting rights. Holding common stock can be a way for investors to benefit from a company’s growth through price appreciation and dividends, if distributed. The value of common stock can be tracked in the equity section of the balance sheet under stockholders' equity.

Related terms to Common Stock include the Balance Sheet, Equity, and Dividends. Common Stock plays a crucial role in corporate finance and investment strategies.