Common Stock: Meaning & Definition

Common stock, also known as equity share, is the financial security that represents the ownership in the company and especially issues to finance long term assets. By investing in company's common stock invester get chance to be an owner of the company. It is one of the major long-term source of financing which is not repaid to the investors in the normal course of business operation. Invester who want to get back their investment can sell it in the secondary market.

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