Glossary · Ownership
Common stock
The “regular” equity owners — usually founders and employees. They are last in line if the company sells for less than hoped, but they capture the upside if things go very well.
Related: Preferred stock · Liquidation preference · Cap table
A bit more nuance▾
- Preferred investors often get paid first on a modest exit; common wins on home runs.
- Option grants are typically for common (or options into common).
Go deeper▾
Discussion questions▾
- Do teammates understand they hold common, not preferred?
- What exit size makes common shareholders smile?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.