Common stock represents ownership in a company, not a direct asset or liability. Issuing common stock raises funds for a company without needing repayment like a loan. Common stock equity ...

Additionally, should a company go bankrupt, not only would its stock likely lose all of its value, but common stockholders would be the last to be paid out when the company’s assets were liquidated.

Common stock represents ownership in a company ... which is equal to the company's assets minus its liabilities. The main point to remember is that the total stockholders' equity is the book ...