Common stock is a type of equity ownership in a corporation. Shareholders of common stock have voting rights and are entitled to potential dividends, but with variable returns and risk.

For example, When investors purchase common stock in Salt Corporation, they gain equity ownership in the company, which entitles them to a portion of the company's profits and a residual claim on its assets

Additionally, portions of the company's profits might get distributed to shareholders as dividends. However, dividends are not guaranteed and can fluctuate with the company's performance and management's decision to pay them.

If the company prospers and grows, the value of the stock may increase, offering the potential for gains.

However, common stocks are riskier than bonds or preferred stocks because their value varies based on the company's success, including technological improvements, senior leadership decisions, and market conditions like competitors' and industry development.

If the company goes bankrupt, payments will be first given to all debtholders, then to preferred shareholders, and lastly to common shareholders.

Common stocks provide a high potential for profit but also a high potential for risk.