Common Stock in United States
Practical Information
Note: Some of this information was last updated in 1982
Corporate stock characterized first by the fact that it entitles its holder to a dividend (in U.S. law) only after the rights of the holders of preferred stock (in U.S. law) have been satisfied, and second by the fact that it usually has voting rights attached. Common stock represents the basic ownership of the corporation (in U.S. law) . With only nominal exception, all corporations have common stock. Some corporations have common stock only; others have common and preferred and/or a variety of hybrids. Upon the dissolution of a corporation, common stock entitles its owners to all that is left after allowance for claims having priority. During periods of prosperity common stockholders are in the enviable position of having an unlimited interest in the profits and assets of the corporation while the holders of preferred stock have only the right to receive dividends at a fixed or stated rate. However, during periods of business decline the position of common stockholders is less desirable because by the time prior claimants have received their due, there may be nothing left for the holders of common stock. Common stock generally carries with it voting rights that enable the holders to participate in the management of the corporation and thereby to exercise a certain amount of control of the corporate assets, which, basically, they own. Sometimes common stock does not have the voting privilege.
What is Common Stock?
For a meaning of it, read Common Stock in the Legal Dictionary here. Browse and search more U.S. and international free legal definitions and legal terms related to Common Stock.
Resources
See Also
Further Reading (Articles)
Research and Markets Offers Report: TheStreet Ratings Guide to Common Stocks, Editions, Manufacturing Close-Up; October 2, 2010
TheStreet Ratings Guide to Common Stocks: A Quarterly Compilation of Ratings and Analyses Covering Common Stocks Traded on the NYSE, AMEX and NASDAQ, spring 2011.(Brief article)(Book review), Reference & Research Book News; October 1, 2011
Analyzing the Nature of Institutional Demand for Common Stocks, Quarterly Journal of Business and Economics; March 22, 1998; Eakins, Stanley G. Stansell, Stanley R. Buck, James F.
Common stocks could pay dividends: Quality stocks may benefit from a mild economic recovery. (The Economy)., Money Digest; April 1, 2002; Chakrapani, Dr. Chuck
Cash is better than common stocks – at least for right now, Chicago Sun-Times; October 11, 1987; Edwin Darby
Don’t give up on common stocks, Chicago Sun-Times; November 14, 1989; Edwin Darby
Common stocks., Money Digest; January 1, 1998
Eads & Heald Investment Counsel: Common Stocks Investing Strategy Could Lead to Success, Wireless News; September 1, 2008
A bullish future for common stocks, USA TODAY; March 1, 1996; Lizzio, Joseph P
Brazil: Gerdau to sell common stocks., South American Business Information; November 24, 2004
USX GIVES DIVIDENS ON 3 COMMON STOCKS, Post-Tribune (IN); July 26, 1995
EQUITIES.(common stocks trading on Canadian stock exchanges)(Brief Article)(Statistical Data Included), Money Digest; November 1, 2001
KASE – Common stocks KZ1C58490018, KZ1C00000421 (TEMA) and preferred stocks KZ1P58490213, KZ1P00000434 (TEMAp) of TEMA Ko. (Kazakhstan) admitted to KASE official list’s second category., Kazakhstan Stock Exchange News; May 30, 2011
Yayi International Noteholders Agree to Convert Notes into Common Stocks., Pediatrics Week; December 19, 2009
UFS Investment Company – Technical Analysis, Sberbank’s Common Stocks – Buy While It’s Cheap, Mar 27, 2013, Russian Banks and Brokers Reports; March 27, 2013
UFS Investment Company – Technical Analysis, Common Stocks of Sberbank (SBER), Jul 18, 2012, Russian Banks and Brokers Reports; July 18, 2012
Research and Markets Adds Report: TheStreet Ratings Guide to Common Stocks, Editions.(Report), Entertainment Close-up; September 30, 2010
Brazil: CVRD’s common stocks to be sold this year., South American Business Information; July 19, 1999
Peru: Duke Energy to acquire Egenor’s common stocks., South American Business Information; December 27, 2000
Brazil : Fertifos buy back Fosfertil’s common stocks., South American Business Information; February 22, 2001
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