# Common Stock

*Markets & Instruments — Finicade finance glossary*

Common stock is ordinary ownership in a company: a vote, a claim on profits after everyone else is paid, and unlimited upside. The phrase that matters is 'after everyone else' — in a liquidation, common shareholders rank behind bondholders, suppliers, tax authorities and preferred shareholders, which is why recoveries are usually zero. That last-in-line position is exactly why common stock earns the highest long-run return of the major asset classes.

**Also known as:** ordinary shares, common shares, equity shares

**Related terms:** [Preferred Stock](https://finicade.com/glossary/preferred-stock), [Stock (Equity)](https://finicade.com/glossary/stock), [Dividend](https://finicade.com/glossary/dividend), [Free Float](https://finicade.com/glossary/free-float), [Shareholder Rights](https://finicade.com/glossary/shareholder-rights)

Source: https://finicade.com/glossary/common-stock