Common stock represents ownership in a company and is one of the most prevalent types of equity securities. When individuals purchase common stock, they gain a claim on the company's assets and earnings. Common stockholders may receive dividends, which are payments made from the company's profits, although these are not guaranteed. Investing in common stock also provides shareholders with voting rights, allowing them to participate in important company decisions, such as electing the board of directors. The value of common stock can fluctuate based on the company's performance and market conditions, making it a potentially rewarding but risky investment.