What is Common Stock?
Cfefinances
Common stock can be referred to as ordinary shares. A common stock holder can elect a board of directors and can vote on corporate policy. If the company was to go out of business, the common stockholders would be paid off last after any bondholders, preferred stock owners and other debt holders.
Think about ordinary ownership shares that come with voting rights. If the company fails, these holders get paid last — after bondholders and preferred shareholders.