Reply to the statement below in 100 words or more about common stock
A company that becomes public benefits by receiving cash from shareholders that purchase stock in the company. Shareholders that have purchased common stock can then vote for who will be on the board of directors of the company. The more shares that a shareholder has, the more votes they are allowed. Common stock shareholders are paid dividends with no maturity date and no limit on their return on investment. Unlike bonds that have a fixed claim and a maturity date, common stock is a residual claim. That is, if the company ceases operations and pays off its liabilities, common stock shareholders would receive the remaining money if any.
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