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 ?
GM would distribute a total of approximately 103 million shares of Class A common stock of Hughes Defense, which will represent about 30 percent of the total equity of the combined Hughes Defense/Raytheon company, to its GM $1-2/3 and Class H common stockholders if they approve the transactions.
The final distribution ratio must be determined at a later date because one component of the formula is the 30-day average closing market price of Raytheon common stock just prior to the effective date of the merger.
GM Class H common stockholders would receive 54 million shares of Class A common stock of Hughes Defense, or approximately 52 percent of the total number of Class A common stock shares.