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Common Stock

A security that represents an ownership interest in a publicly-held company whereby a stockholder is eligible to participate in profit (dividend distributions) and enjoys voting rights on specific matters related to the operation of the company such as mergers and acquisitions, amendments to the company’s charter, etc. Common stock has various forms, each of which has its own use. Variations include: classified common stock, deferred stock, debenture stock, guaranteed stock, and voting trust certificates.


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