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Owner's Equity & Common Stock
Owner’s equity, also viewed as a residual claim on a business’s asset, represents an investor's investment claim in a business. Common stock is the security that represents the investor’s ownership in a business. It is recorded in the stockholder's equity section of a company's balance sheet. Holders of common stock have the right to vote on corporate policies and elect a board of directors. However, in the case of bankruptcy, common stock owners get their money after debt holders and preferred shareholders. Watch Video