Common shares are a relatively simple and widely used form of equity security, especially in a corporations early growth stages. If only one class of common shares is issued, they align the interests of founders and investors by allowing investors to participate in the governance of the corporation, receive dividends, and receive a share of the remaining property upon liquidation of the corporation. Note that common shareholders are only entitled to the residual amount after preferred shareholders have received their share of dividends or property following liquidation. Additional protections can be included in a shareholder agreement (such as seats on the board of directors). Accurate valuation of the shares may require dealing with a sophisticated investor.