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 ?
9) Nonetheless, the requirement in section 3(a)(3) of the BHC Act that the Board's approval be obtained before a bank holding company acquires more than 5 percent of the voting shares of a bank suggests that Congress contemplated the acquisition by bank holding companies of between 5 and 25 percent of the voting shares of a bank or a bank holding company.
First Mariner owns less than 1 percent of the voting shares of Glen Burnie and has an agreement to acquire an additional 18.