What rights do shareholders have in common stock?

Common stock is a class of stock that represents equity ownership in a corporation. Owners of common stock, called shareholders, are entitled to the following rights: Voting rights to elect the members of the board of directors. Typically, shareholders may cast one vote per share.

What is a common stock?

Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Commonwealth realms.

Does common stock entitle a shareholder to a share of profits?

Depending on the company, common stock may also entitle its owner to a share of the company’s profits, in the form of dividends. This is more common in some sectors of the stock market — such as the energy sector — but less common in others, such as the technology sector.