{"id":24408,"date":"2026-01-17T05:37:03","date_gmt":"2026-01-17T05:37:03","guid":{"rendered":"https:\/\/wp-api.pocketful.in\/blog\/?p=24408"},"modified":"2026-01-17T05:37:04","modified_gmt":"2026-01-17T05:37:04","slug":"what-is-common-stocks","status":"publish","type":"post","link":"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/","title":{"rendered":"What Is Common Stocks?"},"content":{"rendered":"\n<p>Common Stocks refers to a kind of security that signifies a proportion of ownership of a corporation. When you purchase common stocks of Reliance, TCS, or HDFC Bank, you&#8217;re not actually placing a bet on an intangible figure rising rather you&#8217;re buying a portion of that business.<\/p>\n\n\n\n<p>But you must be thinking about what you can get from these common stocks. You&#8217;re getting a share of the profits, and a say in how the firm will shape up in the future. This is the main driver of wealth creation in India.<\/p>\n\n\n\n<p>This blog will break down exactly how a common stock offering (IPO) works to give life to these shares and the distinction between common stock and preferred stock, and how you can incorporate them into your portfolio.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#What_Is_Common_Stock\" title=\"What Is Common Stock?\">What Is Common Stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Common_Stock_Offering\" title=\"Common Stock Offering\u00a0\">Common Stock Offering\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Key_Features_of_Common_Stock\" title=\"Key Features of Common Stock\">Key Features of Common Stock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#What_Is_Preferred_Stock\" title=\"What Is Preferred Stock?\">What Is Preferred Stock?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Common_Stock_vs_Preferred_Stock\" title=\"Common Stock vs. Preferred Stock\">Common Stock vs. Preferred Stock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Advantages_of_Common_Stocks\" title=\"Advantages of Common Stocks\">Advantages of Common Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#_Disadvantages_of_Common_Stocks\" title=\"&nbsp;Disadvantages of Common Stocks\">&nbsp;Disadvantages of Common Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Whats_Happening_in_2026\" title=\"What\u2019s Happening in 2026?\">What\u2019s Happening in 2026?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#How_to_Invest_in_Common_Stock_With_Pocketful\" title=\"How to Invest in Common Stock With Pocketful\">How to Invest in Common Stock With Pocketful<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#How_to_Invest_in_Preferred_Stock\" title=\"How to Invest in Preferred Stock\">How to Invest in Preferred Stock<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/wp-api.pocketful.in\/blog\/what-is-common-stocks\/#Frequently_Asked_Questions_FAQs\" title=\"Frequently Asked Questions (FAQs)\">Frequently Asked Questions (FAQs)<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\" id=\"h-what-is-common-stock\"><span class=\"ez-toc-section\" id=\"What_Is_Common_Stock\"><\/span>What Is Common Stock?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Common stock, on the other hand, is equity. It is a common form of ownership in a corporation, meaning they are stocks that give equity to the investors in the company. Here the investor owns a stake by buying the company&#8217;s share. As opposed to being a loan, where you get interest, you own a stake. Instead of a loan, where you have an agreement stating \u201cwe will pay you back,\u201d you have an agreement stating \u201cwe will give you a share of what we build.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-here-you-get-your-share-in-two-ways-nbsp\">Here you get your share in two ways:&nbsp;<\/h3>\n\n\n\n<p><strong>Dividends:<\/strong> If the company makes a massive profit, the Board of Directors might decide to share that cash with you. This is your reward for trusting them.<\/p>\n\n\n\n<p><strong>Capital Gains:<\/strong> If the company grows, the value of your slice grows. This is where the real wealth is made, when the stock price jumps from Rs.100 to Rs.500 over a few years.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-stock-offering\"><span class=\"ez-toc-section\" id=\"Common_Stock_Offering\"><\/span>Common Stock Offering\u00a0<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Common stock offering, commonly known as Initial Public Offering or IPO, where a company lists for the very first time on the stock exchange to raise funds from the public. Thereafter, the stock begins to exist in the secondary market, where you are free to trade with that stock.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-key-features-of-common-stock\"><span class=\"ez-toc-section\" id=\"Key_Features_of_Common_Stock\"><\/span>Key Features of Common Stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-ownership-amp-voting-rights\">Ownership &amp; Voting Rights<\/h3>\n\n\n\n<p>In India according to section 47 of the Companies Act, you have the legal right to vote on major matters through your equity share. We get to vote on whether the Board of Directors consists of the right people or whether the company should merge with its rival. With the help of e-voting, voting on these major matters using your smartphone becomes easy and convenient.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-dividends-nbsp\">Dividends&nbsp;<\/h3>\n\n\n\n<p>Dividends on common stock are not guaranteed. The company\u2019s board decides every year if they want to pay you or put that money back into building a new factory. Dividends can disappear overnight, if profits dips.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-capital-appreciation-potential-nbsp\">Capital Appreciation Potential&nbsp;<\/h3>\n\n\n\n<p>This is the most beneficial aspect and the reason why we invest. If you lend money to a bank (FD), the return is capped (say 7%). But if you own common stocks, there is no cap. Suppose they discover something revolutionary and their growth multiplies 100 times, the return multiplies 100 times.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-residual-claim-on-assets-nbsp\">Residual Claim on Assets&nbsp;<\/h3>\n\n\n\n<p>As a common shareholder, you are placed absolutely last in line because you only receive the remains of profits after everyone else has been paid off. Unfortunately, this means that after the government (taxes and dues), banks (lender\/borrowers), and preferred shareholders (preference investors) have been settled, the remaining amount is for the common shareholders.<\/p>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/types-of-investment-in-the-stock-market\/\">Types of Investment in the Stock Market<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-is-preferred-stock\"><span class=\"ez-toc-section\" id=\"What_Is_Preferred_Stock\"><\/span>What Is Preferred Stock?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-fixed-dividends\">Fixed Dividends<\/h3>\n\n\n\n<p>The preferred stock generally has a fixed dividend rate (for instance, 9% a year). This doesn\u2019t matter if the company makes a rupees one billion profit or breaks even; they have to pay you this dividend prior to paying even a rupees one penny to common stock holders.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-no-voting-rights\">No Voting Rights<\/h3>\n\n\n\n<p>The preferred stockholders are often silent partners. They look forward to fixed returns and do not interfere in the management of the company. There is, however, a safety valve. If the company fails to pay their dividends for two years or more, the preferred stockholders surprisingly obtain the voting rights regarding all resolutions.<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-liquidation-priority\">Liquidation Priority<\/h3>\n\n\n\n<p>If liquidation occurs, preferred stockholders reclaim their life capital prior to common stockholders. This gives preferred stock a lower risk profile compared with common stock, but higher than that for a deposit in a bank.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-common-stock-vs-preferred-stock\"><span class=\"ez-toc-section\" id=\"Common_Stock_vs_Preferred_Stock\"><\/span>Common Stock vs. Preferred Stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th>Feature<\/th><th>Common Stock<\/th><th>Preferred Stock<\/th><\/tr><\/thead><tbody><tr><td><strong>Goal<\/strong><\/td><td>You want your money to multiply over time, looking for growth.&nbsp;<\/td><td>You want a steady paycheck (dividend), meaning you get regular payments.<\/td><\/tr><tr><td><strong>Voting<\/strong><\/td><td>You are an active owner with a say in the business.<\/td><td>You are a passive investor, so you don\u2019t have voting rights.<\/td><\/tr><tr><td><strong>Risk<\/strong><\/td><td>You are the last to get paid in a crisis, which means it has risk.<\/td><td>You have priority over common shareholders, giving you moderate risk.<\/td><\/tr><tr><td><strong>Returns<\/strong><\/td><td>Can be massive or zero.<\/td><td>Returns are Fixed, as you are capped at a specific percentage.<\/td><\/tr><tr><td><strong>Liquidity<\/strong><\/td><td>You can buy\/sell instantly on apps, as these are highly traded.<\/td><td>Hard to find buyers\/sellers in the Indian market.<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-advantages-of-common-stocks\"><span class=\"ez-toc-section\" id=\"Advantages_of_Common_Stocks\"><\/span>Advantages of Common Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Beating Inflation:<\/strong> Common stocks are the best asset class to beat inflation over the long term. A fixed deposit might barely keep up with rising prices, but a good business can grow much faster.<\/li>\n\n\n\n<li><strong>Liquidity:<\/strong> Money in real estate is &#8220;stuck&#8221; for months. Money in common stocks is available in T+1 days. You can sell your shares on an app like Pocketful and have the cash in your bank account almost immediately.<\/li>\n\n\n\n<li><strong>Limited Liability:<\/strong> Even if the company you invested in goes bankrupt with massive debts, creditors cannot come after your personal assets. You can only lose the amount you invested, nothing more.<\/li>\n<\/ul>\n\n\n\n<p><strong>Read Also: <\/strong><a href=\"https:\/\/www.pocketful.in\/blog\/what-are-shares\/\">What are Shares \u2013 Definition, Example, and Benefits<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-nbsp-disadvantages-of-common-stocks\"><span class=\"ez-toc-section\" id=\"_Disadvantages_of_Common_Stocks\"><\/span>&nbsp;Disadvantages of Common Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Volatility:<\/strong> Prices fluctuate wildly, a 20% drop in a month is normal. If you need the money next month, do not put it in common stocks. You need a strong stomach to ride out the waves.<\/li>\n\n\n\n<li><strong>Uncertainty:<\/strong> There is no guaranteed income. You cannot plan your monthly household expenses based on common stock dividends, because the company might decide to cut them to zero.<\/li>\n\n\n\n<li><strong>Capital Risk:<\/strong> In a worst-case scenario, the value of your investment can go to zero. There is no safety net or insurance for poor stock performance.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-s-happening-in-2026\"><span class=\"ez-toc-section\" id=\"Whats_Happening_in_2026\"><\/span>What\u2019s Happening in 2026?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Foreign Institutional Investors (FIIs) have not stopped selling stocks in the Indian market. In fact, they have been selling assets to the tune of nearly Rs.152 crores every trading hour. It would have ruined our market once upon a time. But in 2025, the retail investor in the Indian market was like a wall in front of this tsunami. The SIP inflows have remained above a massive figure of Rs.29,000 crores every month.<\/p>\n\n\n\n<p>The normalization of interest rates, adhering to a monetary policy, brought a boost in growth, which is now expected to reach a level of 6.5%. Although this is a positive development, it is likely that a change in trend is imminent. As a result of rate cuts initiated by the RBI in 2025, aiming to reach a level of 5.25% by the end of the year, the cost of doing business will decrease.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-invest-in-common-stock-with-pocketful\"><span class=\"ez-toc-section\" id=\"How_to_Invest_in_Common_Stock_With_Pocketful\"><\/span>How to Invest in Common Stock With Pocketful<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Instant KYC:<\/strong> No more couriering paper forms. You can <a href=\"https:\/\/www.pocketful.in\/open-demat-account\">open an account with Pocketful <\/a>in a few minutes using just your Aadhaar and PAN.<\/li>\n\n\n\n<li><strong>Zero Brokerage on Delivery:<\/strong> If you buy shares to hold (delivery), you pay <strong>Rs.0 brokerage<\/strong>. This is massive for long-term investors, as fees can eat into your profits over time.<\/li>\n\n\n\n<li><strong>Pockets:<\/strong> It is a carefully curated basket of stocks, designed around themes such as &#8216;Electric Vehicles&#8217; or &#8216;<a href=\"https:\/\/www.pocketful.in\/blog\/best-it-stocks-in-india\/\">Top IT Stocks<\/a>&#8216;. The advantage is that you get to invest in the entire thematic basket in one click.<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-direct-purchase-vs-mutual-funds\">Direct Purchase vs. Mutual Funds<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Direct Purchase:<\/strong> You invest in shares of particular companies like Reliance. You should do your own analysis about the particular company.<\/li>\n\n\n\n<li><strong>Mutual Funds:<\/strong> A fund manager will charge you to manage your investment. It is safer but with a little higher cost. You can <a href=\"https:\/\/play.google.com\/store\/apps\/details?id=in.pocketful.android&amp;hl=en_IN\">use Pocketful App<\/a> to invest in both shares and mutual funds.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-how-to-invest-in-preferred-stock\"><span class=\"ez-toc-section\" id=\"How_to_Invest_in_Preferred_Stock\"><\/span>How to Invest in Preferred Stock<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-medium-font-size\" id=\"h-the-alternatives\">The Alternatives<\/h3>\n\n\n\n<ol class=\"wp-block-list\">\n<li><strong>Corporate Bonds \/ NCDs:<\/strong> They offer fixed interest and are easier to trade on the market.<\/li>\n\n\n\n<li><strong>Debt Mutual Funds:<\/strong> These funds invest in various safe, interest-paying options, giving you expert help and better trading than buying individual preferred shares.<\/li>\n<\/ol>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The best way to make money, and owning stock is like getting on board. It lets you team up with the brightest business minds. You don&#8217;t need to create the next big thing, just be wise enough to buy a piece of it, though there are risks and the market will fluctuate. But as we&#8217;re seeing in 2026, the Indian market is growing up. Local investors aren&#8217;t just watching anymore, rather they&#8217;re leading the way.<\/p>\n\n\n\n<p>Whether you&#8217;re starting small or going big, the rules are the same, you should know what you&#8217;re buying, think about the future, and get the right resources. Platforms like <a href=\"https:\/\/www.pocketful.in\/\">Pocketful<\/a> are making it simpler and cheaper than before to get started.<\/p>\n\n\n\n<figure class=\"wp-block-table has-small-font-size\"><table><thead><tr><th class=\"has-text-align-left\" data-align=\"left\">S.NO.<\/th><th class=\"has-text-align-left\" data-align=\"left\">Check Out These Interesting Posts You Might Enjoy!<\/th><\/tr><\/thead><tbody><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>1<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-commodity-valuation\/\">What is Commodity Valuation?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>2<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-auction-market\/\">What is Auction Market?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>3<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/mis-in-share-market\/\">What is MIS in Share Market?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>4<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/right-issue-of-shares\/\">What is Right Issue of Shares: Meaning, Examples, Features<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>5<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/what-is-earnings-per-share-eps\/\">What is Earnings Per Share (EPS)?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>6<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/personal-finance\/stock-market-terminology\/\">Top 20 Basic Stock Market Terminology for Beginners<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>7<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/margin-money\/\">What is Margin Money?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>8<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/pledging-of-shares\/\">What is Pledging of Shares?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>9<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-intraday-margin-trading\/\">What is Intraday Margin Trading?<\/a><\/td><\/tr><tr><td class=\"has-text-align-left\" data-align=\"left\"><strong>10<\/strong><\/td><td class=\"has-text-align-left\" data-align=\"left\"><a href=\"https:\/\/www.pocketful.in\/blog\/trading\/what-is-operating-profit-margin\/\">What is Operating Profit Margin?<\/a><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions-faqs\"><span class=\"ez-toc-section\" id=\"Frequently_Asked_Questions_FAQs\"><\/span>Frequently Asked Questions (FAQs)<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div class=\"saswp-faq-block-section\"><ol style=\"list-style-type:none\"><li style=\"list-style-type: none\"><h3 class=\"\">What is the main difference between common stock and preferred stock?<\/h3><p class=\"saswp-faq-answer-text\">Common stock is for growth (voting rights, variable profit). Preferred stock is for income (fixed dividends, no voting rights, priority payment).<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Can I lose all my money in common stocks?<\/h3><p class=\"saswp-faq-answer-text\">Yes. If a company goes bankrupt, common shareholders are the last to get paid. If the company has no assets left after paying debts, your share value becomes zero. Diversification (buying multiple stocks) is your safety net.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">Do I have to pay a monthly fee to keep a Demat account?<\/h3><p class=\"saswp-faq-answer-text\">It depends on the broker. Apps like <a href=\"https:\/\/www.pocketful.in\/pricing\">Pocketful give Zero Annual Maintenance Charges (AMC) <\/a>for the first year, and hence the maintenance of your accounts is free.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">What is a &#8220;Pocket&#8221; in the Pocketful app?<\/h3><p class=\"saswp-faq-answer-text\">This is a pre-made basket of stocks. You don\u2019t have to research different companies for a strategy, but simply invest into a \u201cPocket\u201d portfolio, which will include them all for you.<\/p><li style=\"list-style-type: none\"><h3 class=\"\">How do I get dividends?<\/h3><p class=\"saswp-faq-answer-text\">If you own common stock and the company declares a dividend, the money is directly credited to your primary bank account linked to your Demat account, nothing else is needed.<\/p><\/ul><\/div>","protected":false},"excerpt":{"rendered":"<p>Common Stocks refers to a kind of security that signifies a proportion of ownership of a corporation. When you purchase common stocks of Reliance, TCS, or HDFC Bank, you&#8217;re not actually placing a bet on an intangible figure rising rather you&#8217;re buying a portion of that business. But you must be thinking about what you [&hellip;]<\/p>\n","protected":false},"author":10,"featured_media":24556,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"is_paper_insight":false,"paper_insight_image":0,"paper_insight_pdf":0,"paper_insight_ppt":0,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-24408","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"acf":{"freelancer":"Harjyot"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.13 (Yoast SEO v21.2) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What Is Common Stocks? 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