Securities representing equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the firm's success throughdividends and/or capital appreciation. In the event of liquidation, common shareholders have rights to a firm's assets only after bondholders, other debt holders, and preferred shareholders have been satisfied. Typically, common shareholders receive one vote per share to elect the firm's board of directors (although the number of votes is not always directly proportional to the number of shares owned). The board of directors is the group of individuals that represents the owners of the corporation and oversees major decisions for the firm. Common shareholders also receive voting rights regarding other firm matters such as stock splits and firm objectives. In addition to voting rights, common shareholders sometimes enjoy what are called ""preemptive rights"". Preemptive rights allow common shareholders>to maintain their proportional ownership in the firm in the event that the firm issues another offering of stock. This means that common shareholders with preemptive rights have the right but not the obligation to purchase as many new shares of the stock as it would take to maintain their proportional ownership in the firm. Also known as junior equity or common stock.