Common Stock Investments
Definition - What does Common Stock Investments mean?
Common stock investments are investments made by purchasing shares of stock in a corporation, commonly on stock exchanges such as the NASDAQ. A common stock is an individual share of ownership of a company.
Many insurance companies invest money they bring in from premiums by purchasing common stock.
Insuranceopedia explains Common Stock Investments
Insurance companies often make common stock investments for two reasons. First, they want to increase their profits. Second, they want to help their policyholders make more money. Many life insurance companies offer various types of investment opportunities, including common stock investments, as a part of their policies. If the stocks perform well, they can generate large returns for the insurer and the policyholder.