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Common stock is a class of stock that represents equity ownership in a corporation. Owners of common stock, called shareholders, are entitled to the following rights: Voting rights to elect the members of the board of directors. Typically, shareholders may cast one vote per share.
Because of this, common stock is referred to as an equity security. Example: Coca-Cola is the issuer of Coca-Cola stock. Example: the investor is long (owns) 100 shares of GE stock. Example: the investor goes long (buys) 100 shares of GE stock.
????? Stock: An equity security that represents the purchase of a share of ownership in a corporation by a shareholder. ????? Common Stock: Shares of stock in a corporation that give the shareholder a proportionate interest in the corporate with regard to voting, earnings, and net assets.
Common stock, as its name implies, is one of the most ordinary types of stock. It gives shareholders a stake in the underlying business, as well as voting rights to elect a board of directors and a claim to a portion of the company's assets and future revenues.
You may have to report compensation on line 1a of Form 1040, U.S. Individual Income Tax Return or Form 1040-SR, U.S. Tax Return for Seniors and capital gain or loss on Schedule D (Form 1040), Capital Gains and Losses and Form 8949, Sales and Other Dispositions of Capital Assets when you sell the stock.