Common stock

If you invest in common stock, you’re investing in the ownership of a corporation. It means that you also get to help elect the board of directors and vote when the company makes corporate decisions (as long as you have a voting share and not a non-voting share). In short, each share of common stock that a company owns represents a portion of ownership for that company.

Example: A company must declare a dividend first, which is the amount of money that the shares they’re selling are worth. Suppose they set this dividend to $5 million and sell a million shares. Each shareholder of one common stock would get $5. If you have ten shares, you’d get $50.

Sign up for course updates!

* indicates required
What topic(s) are you interested in?

By subscribing, you agree to our Privacy Policy and Terms of Use. You can unsubscribe at any time by contacting onomy or using the unsubscribe link.

lessons