• Corporations use stock to raise capital by distributing shares of their company.

• Someone who holds any amount of shares in a particular stock is a stock holder.

• Most commonly held form of stock in a corporation.

• Shareholders of common stock have voting rights in some corporate decisions.

• Holders have priority over common stock (distribution of dividends, assets)

• Special voting rights dealing with events such as the issuance of new shares or approving the acquisition of a company.

• Also often have voting rights to elect directors

• Shares issued for a single company with differing classes to show varied voting rights and dividend payments.

• Each class of shareholders has different rights.

• Shares that have been bought back from the public.

• Such stock is considered issued, but not outstanding.

• A director is an officer of a company in charge of the management of the company’s affairs.

• All of the directors are known as the board of directors. Most companies will appoint a chairman of the board.

• Occurs when a company (or part of a company) is terminated

• Assets and property are redistributed, and preferred stockholders have advantages over common stockholders in this situation.

• Payments by a company to its shareholders

• Profits can be re-invested in business or paid to shareholders. Publicly-traded companies usually pay dividends on a fixed schedule (bi-annually, quarterly, etc.).

• Usually paid in cash or can take the form of shares in other companies or assets.