jmc_trades

Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies. This form of equity ownership typically yields higher rates of return long term.

However, in the event of liquidation, common shareholders have rights to a company's assets only after bondholders, preferred shareholders, and other debt holders are paid in full. Common stock is reported in the stockholder's equity section of a company's balance sheet.

Focus on getting the trade to work first. Money is the reward, an outcome of a successful trade. Thinking solely about the reward will cloud your judgment.