Definition
Common stocks are shares that represent ownership in a company. When you buy common stock, you become a part owner of the company and may earn returns through price increases and dividends.
Example
When you buy shares of a company like Reliance Industries, you own a small part of that company. If the company performs well, the share price may increase, and you may also receive dividends.
Caution
Common stockholders usually have voting rights, but they are paid after all debts and preferred shareholders in case of losses. The value of common stocks can go up or down, so they carry market risk.