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 ?
2701-1(b) (3)(i) adds, "common stock with nonlapsing voting rights and nonvoting common stock are interests that are substantially the same," this is simply a restatement of the exception for common stock discussed previously.
No share of Alumax class A common stock, however, could be issued and outstanding at any time that any share of the Alumax class C common stock was issued and outstanding, and vice versa.
In a departure from current practice, the FASB would require preparers to use the average market price of the common stock during the period when calculating diluted EPS.
However, because the three Simplot siblings would all want to maximize their children's interests in the company, they would probably require the proceeds of a sale or merger to be distributed on an equal pershare basis to the voting and nonvoting common stock.
Issue 1: Are the convertible preferred shares issued to an ESOP considered common stock equivalents?