Question

What are common stocks? What are advantages and disadvantages of common stocks?

Answer 1

Hello There!

Common stocks are stocks that are an indication of ownership in public companies.

ADVANTAGES:

Possible dividends

Ownership in a company

Potential for growth

DISADVANTAGES:

Risk of complete loss

Ups and downs of the stock price

Not every stock pays a dividends

Answer 2

Common stocks are stocks also known as securities that show how and who has ownership in the corporation. Those who own common stock have some control over the corporation and are decision makers within the company. The advantages of common stock are that those who own them have shares in the company and make decisions. A disadvantage of common stock is the financial risk that comes with it.