Common stock refers to the most basic class of equity ownership. It is typically held by individuals (usually founders and employees) at a startup--investors generally hold preferred stock. These shares represent an ownership stake in the company and give shareholders certain rights and privileges. Key features of common stock include:

• Ownership Rights: Common stockholders have an ownership interest in the company and can participate in the company's growth and success. They have the right to receive dividends, if declared by the company's board of directors (though this is quite rare in the startup world), and may accrue significant wealth if the stock's value increases from the time it was acquired by the holder.

• Voting Rights: Common stockholders generally have the right to vote on important matters that affect the company's operations and direction. Each share of common stock typically carries one vote, although certain voting arrangements may give some shareholders more voting power than others.

• Residual Claim on Assets and Earnings: In the event of a company's liquidation or winding up, common stockholders have a claim on the company's assets after creditors and preferred shareholders are paid. This means that common stockholders have a higher risk compared to creditors or preferred shareholders.

• Limited Liability: Common stockholders, just like Preferred Stockholders, enjoy limited liability, which means their losses in the company's activities are generally limited to the amount they have invested in the stock. They are not personally liable for the company's debts or legal obligations beyond their investment.

It's important to note that common stockholders may have different rights and privileges depending on the documents governing the company’s organization. These variations can include restrictions on voting rights, dividend preferences, and other provisions that may impact the rights and benefits associated with common stock ownership.