Common stock represents ownership in a company, not a direct asset or liability. Issuing common stock raises funds for a company without needing repayment like a loan. Common stock equity ...
Issuance of common stock refers to the process by which a company sells its shares to investors to raise capital. Common stock represents ownership in the company, granting shareholders voting ...
teekid / Getty Images Preferred stock is equity. Its shares represent an ownership stake in a company just like common stock but preferred stock normally has a fixed dividend payout as well.