Common stock represents ownership in a company. When you purchase shares in a corporation, you become, in effect, a silent partner (unless, of course, you have the funds to acquire a meaningful percentage of the equity, in which case you can elect yourself to the Board of Directors and enact changes). As such, the value of your investment is directly tied to the operating results of the business over the long-run, just as if you had opened a coffee shop with your best friend, or bought a miniature golf course with your family.
This distinction
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