There are different types of stocks like, common stock, preferred stock and treasury stock, which a corporation could issue. 

Common Stock Assignment Help: Common stock equity is an ownership capital that is owned by shareholders of the company and it is used as source of financing. Common stock equity represents equity shares of the company that is useful to raise funds from the market. It is one of the cheapest sources of financing due to absence of interest expenses.

By using common stock equity, the company can generate capital directly from individual and institutional investors by issuing shares in the market through initial public offering (IPO). This type of source of financing is commonly used to finance larger expenses such as business expansion, new product development, and setting of new plant. The buyers have power to sell the stock and realize capital gains on public trading markets or in private transactions. Investors in common stocks should be aware that they are one of the riskiest types of investments. In this, there is no guarantee of return to the shareholder and the price of common shares may fluctuate more than the price of corporate bonds or preferred stocks. Common shareholders have final claim on its assets on dissolution or liquidation of a corporation.

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