Finance & Moneybeginner
Common Stock
Definition
The basic class of shares usually held by founders and employees, with fewer special rights than preferred stock.
Why it matters
As a founder you typically hold common stock, which is paid out after preferred shareholders if the company is sold.
Example
A founder and her early team all hold common stock, while their investors hold preferred stock.
Related terms
Learn the language of business - and build the systems behind it.
Rich Girl Systems turns 1168+ founder concepts into a step-by-step programme with daily challenges, XP and your own assistant.
Take the free founder quiz