What is Common Stock in finance

Common Stock is a security issued by a company and it represents partial ownership of that company. The holder has voting rights over corporate strategy and election of the board of directors.

In the event of default, the holders of common stock will be paid off from liquidation of the company assets after the bondholders, preferred shareholders and any other debt holder has received their money in full, i.e. common stock holders are the lowest repayment priority.