Common Stock is an equity security which offers the owner the right to share in the profits of the business entity, vote on matters of corporate policy, and entitle a position as a member of the board of directors. Even though Common Stocks grant entitlement to dividends in a company, the actual realisation of the dividend and the amount, however, depends on the dividend policy of the business entity as well as to whether the business made profits. Normally, businesses do not distribute dividends when losses are incurred. In business valuation analysis, the size of common stocks held in a business and the associated privileges such as majority, minority, voting rights, etc may necessitate the application of premiums or discounts which will impact the fair market value conclusions.