Common stock (or ordinary shares) represents the standard form of equity ownership in a company, entitling shareholders to a proportional stake in the business, voting rights at general meetings, and a share of residual profits through dividends—after all creditors and preference shareholders have been paid. Common stockholders bear the highest risk in the capital structure, as they are last in line during liquidation, but they also benefit the most when a company grows in value. In India, the overwhelming majority of shares listed on NSE and BSE are common stock, and they form the core holding in most equity mutual funds and retail investor portfolios.
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