Legal Definition of Common stock:  Common stock is a form of stock in which the owners have voting powers and rights to participate in the profits of the corporation. However, the rights to profits are subject to any superior rights that may have been granted by the company to the holders of preferred stock | Learn about common stock, a key element of corporate ownership. Discover the legal definition, examples, and importance of common stock in the business world. Gain voting powers, dividend potential, and the ability to participate in profits. Find out how common stock allows businesses to raise capital and owners to have a voice in decision-making. Understand the risks and benefits associated with common stock. Start making informed decisions in corporate finance