Series 6: 4.1.1. Common Stock

4.1.1. Common Stock

Most corporations issue common stock. When a corporation is formed, common stock is usually the only class of stock issued; other classes of ownership rights, such as preferred stock, may come later. Common stock offers investors a pro rata (proportional) share of the corporation’s ownership and profits—more shares equal more ownership. While other kinds of stock can be issued, common stock represents most of the ownership of a corporation, and it offers investors the great