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Common Stock
Definition: A security that represents partial ownership in a company. This entitles the stockholder to a portion of profits (dividends) and any voting rights attached to the stock.
Additional Info: In the event of bankruptcy the common stockholders are last in line to be repaid. They fall lower in the pecking order than bondholders, preferred shareholders and other creditors. Also referred to as ordinary shares (UK). Related Terms: Preferred Stock
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