Common Stock
The basic class of equity ownership in a corporation that typically carries voting rights and a residual claim on the company's assets after all debts and preferred stock obligations are satisfied. Common stockholders elect the board of directors and may receive dividends, though they are last in line during liquidation. In startups, founders and employees usually hold common stock, while investors hold preferred stock with additional rights and protections.
Related Terms
A class of equity ownership that carries preferential rights over common stock, typically including liquidation preferen...
The legal entitlements that shareholders have to vote on corporate matters, including the election of directors, approva...
Short for 'capitalization table,' a detailed spreadsheet or document that records the equity ownership structure of a co...
A contractual right granted to an employee, director, or advisor to purchase a specified number of company shares at a p...
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