Common Stock


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Common Stock

Evidence of participation in the ownership of a corporation that takes the form of printed certificates.

Each share of common stock constitutes a contract between the shareholder and the corporation. The owner of a share of common stock is ordinarily entitled to participate in and to vote at stockholders' meetings. He or she participates in the profits through the receipt of dividends after the payment of dividends on preferred stock. Shares of common stock are the Personal Property of their holder.

common stock

n. stock in a corporation in which dividends (payouts) are calculated upon a percentage of net profits, with distribution determined by the Board of Directors. Usually holders of common stock have voting rights. These are distinguished from preferred stock in which the profits are a predetermined percentage and are paid before the common shareholders who gamble on higher profits, and collectively have voting control of the corporation. (See: corporation, stock, share, preferred stock)

See: kinship, relation
References in periodicals archive ?
Example 2: Helen is the sole shareholder of an S corporation that has one class of voting common stock with a $100,000 FMV.
Any action of the Alumax board, which exercised all corporate powers, required an affirmative vote of a majority of the directors elected by the holders of the class A common stock and an affirmative vote of a majority of the directors elected by the holders of the class B common stock.
The objective of diluted EPS is consistent with that of basic EPS: to measure the enterprise's performance over the period while giving effect to all dilutive securities assumed converted to common stock.
Except as described below, in the event that someone acquires 20% or more of the Company's common stock or publicly announces a tender offer which would result in such person's owning 20% or more of the Company's common stock (even if they make no purchase) the Rights will become exercisable.
The estate's experts argued that no premium should apply, because the decedent did not have voting control and the remaining voting common stock was owned by his three siblings.
The employer may redeem the preferred stock with cash or common stock at a price equal to the initial value of the preferred stock.
Our Board of Directors has not yet made any determination of the relative amounts of any regular quarterly cash dividends that will be paid on the Class A Common Stock and Class B Common Stock, Series 1 after June 30, 2007.
Upon (i) the acquisition by a person or group of 15 percent or more of the company's common stock or (ii) 10 days after the public announcement of a tender or exchange offer which would result in a person or group owning 15 percent or more of the company's common stock, the rights will become exercisable.
02 and (ii) 90% of the average of the volume weighted average trading prices of the common stock for the ten trading days immediately preceding the principal payment.
97 percent of the outstanding shares of Class A Common Stock and 93.
95 per share of Duke's common stock and an exchange premium of approximately 20.
Sara Lee currently has approximately 761 million shares outstanding, and based on the distribution ratio, approximately 95 million shares of Hanesbrands common stock will be distributed to Sara Lee shareholders.