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 ?
T transfers all of its properties to P in exchange for $30 of P voting stock and $10 of cash.
T transfers all of its properties to P; P assumes the $10 of liabilities and transfers to T $30 of P voting stock and $10 of cash.
It also removed the restriction that "a foreign bank or a Philippine corporation may own up to 60 percent of the voting stock of only one domestic bank or new banking subsidiary.
The sole consideration issued to the shareholders of the target company is voting stock of acquiring company.
In making this consideration, the court recognized that a hypothetical buyer would consider that such shares could potentially become the largest block of voting stock.
Under the present law, foreign banks may only own or invest in 60 percent of voting stock of Philippine finance institutions.
25% of the US firm's non-voting stock and 20% of its voting stock, as it had increased its global presence and diversified its raw materials sources.
In December last year Mechel won an auction for 55% of Vanino's voting stock, representing a stake of 73.
Helen exchanges part of her voting stock for the nonvoting stock and gives the nonvoting stock to her son, Ben.
Because the preferred stock holders were able to participate in the election of directors, the IRS concluded that the preferred stock was voting stock for purposes of section 1504(a).
A non-qualified REIT subsidiary is generally a subsidiary subject to corporate tax in which the REIT owns non-voting stock and less than 10 percent of the voting stock.