What is Common stock?

WHAT IS COMMON STOCK?
Common stocks are the primary unit of ownership in a corporation with certain rights including voting and major issues concerning corporation. Shareholders as they are known have liability to the value of stocks. So generally common stocks are issued to the Founders, Board of directors, or employees through employee stock option program.
The holders of common stock can reap two main benefits from the issuing company: capital appreciation and dividends. Capital appreciation is rise in the value of assets based on the rise in market price. For example, say you have purchased a share for Rs 10/ per share, which pays dividend of Re 1/year and now trading at Rs 15/per share a year later. Your capital appreciation will be Rs5 or 50%.
Dividend as explained in earlier posts, are the payments made by the corporation to its shareholder members when it earns profit. Joint Stock Company allocates a fixed amount per share while Co-operatives allocate dividends according to the shareholders performance and activity. Dividend can be paid in cash or additional number of shares.