 In this module, I will be explaining the concept of common stock and we will also discuss how the price of a common stock is determined. So firstly we need to understand what is a common stock. A common stock is a principle technique of any corporation which generates money for its investment. If it wants to increase it, what does it do? It issue common stocks. And from that, any listed companies generate common stocks to generate equity capital for themselves. And what happens with this? Whatever common stocks they buy, they become shareholders of that listed company or stock holders, i.e. their partners and their rights are defined. So what are their rights or what value can they buy from them? All these decisions which are the head of the general body, the board of governors, they decide that how much price will be set by the overall listed company for a common stock and what are the rights of the stock holders. Generally the rights are promulgated, they are written, they are defined but they are specific to every listed company. So the rights that are given to the common stock holders or the stock holders can vary from corporation to corporation but generally their rights have a right to vote. They have the right to claim that whatever cash flows you have, whatever your expenses of any company have been given to them. And after that, the remaining money that have been saved, they will claim the stock holders. They can get the money, right? In the form of dividends. And how much dividend will be given, it can be decided on the uncertain regular intervals and we see dividends that there are companies which decide that after every 6 months we will give dividends or after a year we will give dividends. So these are the different things that are related to the concept of common stock. One more important thing is that the stock holder has the right to go to the open market and sell it, anyone can buy it, anyone can sell it and it can become a shareholder or a owner. When we talk about the common stocks, there are certain entry cases that need to be understood. The first thing is that the dividends are decided on the basis of the profit. When any corporation listed company has done the common stocks, when they do all the expenses that they have to pay, after which the profit is saved, they decide that they have to share the profit with their shareholders or reinvest it. If they decide that they have to share, then we call the share of the profit as dividend. So the frequency of the dividend is decided that you have to define the dividend as a shareholder or by annually, after every 6 months or it can be quarterly also. And there is always a board of directors who define the frequency of the dividend and how much the dividend will be given or we will reinvest all the profits that we have earned. So these are the decisions that are taken by the board of governors. Now this is an interesting thing. That is that the stock that you have invested in any company, why do they call that stock as common stock? So common stock means that when you are investing in a company, then you will not be told that its phala machine is yours. You have become the owner of the company's asset or plant. So you will not be given the ownership of a specific asset of that company. Common stock means that you are the general owner. So it does not make you the owner of any specific asset of that company. So therefore we use this word of a common stock. That all the common things generally you are the shareholder of that shareholder. But specifically any machine A or machine B or this raw material is not the owner. This is why we use the terminology of common stock. So basic question is that when we have to take common stock, how will the value of that value be? So this is going to be discussed in the subsequent section.