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In the event of bankruptcy, common stockholders are the last in line to be paid, behind bondholders and preferred stockholders. 2. Common vs. Preferred Stock Common stocks: What they are and why you should care | Saxo

While not guaranteed, companies may distribute a share of profits to common stockholders.

Investors profit primarily if the share price increases over time.

Typically, one share equals one vote for the board of directors and major corporate decisions.

Buying represents the most basic form of corporate ownership. When you buy these shares, you become a "part-owner" with a claim on a portion of the company’s profits and assets.

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