Common Stock | Practical Law

Common Stock | Practical Law

Common Stock

Common Stock

Practical Law Glossary Item 8-568-1305 (Approx. 2 pages)

Glossary

Common Stock

A class of capital stock in a corporation that retains all rights to the residual equity value of the corporation subject to any rights granted to preferred stock. The holders of common stock retain the rights to elect directors and vote on matters reserved to them under the corporate law of the corporation’s jurisdiction of incorporation. It is possible to create different series of common stock, most commonly to create differential voting rights.