Cap table basics
What is Common Stock?
The baseline share class - held by founders and employees, last in line at exit but with full voting rights and upside.
Common stock is the foundational equity class of a Delaware C-corp. It carries one vote per share, full upside on appreciation, and full participation in exit proceeds - but only after preferred stock liquidation preferences clear. Founders and employees hold common stock; venture investors hold preferred stock. Common is also the share class produced when stock options are exercised.