Common Stock

Author:Jeffrey Lehman, Shirelle Phelps

Page 36

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...

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