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Common stock


A security that represents ownership in a corporation. In some cases, holders of common stock exercise control by electing a board of directors and voting on corporate policy. Common stockholders are on the bottom of the priority ladder for ownership structure. In the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders and other debt holders have been paid in full. When they hold equity, FundersClub funds typically hold Preferred stock, not Common stock.

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