Common Stock

Common stock is a security that gives the holder of that security ownership of the portion of the company. Holders of common stock have a say in the running of the company and the power to vote on corporate policies and decisions. All the profits of the company accrues to the common stockholders. Common stock of the company is issued at a certain face value like Rs.1, Rs.5 or Rs.10. Total common stock refers to the sum of face value of all shares of common stock issued.

For example, if a company issues 10,000 shares of common stock at a face value of Rs.10, the total common stock will be Rs.1,00,000 (10,000 * 10).