What is Corporate Stock
What is Corporate Stock?

BUSINESS SERVICES


Secure Online Business Services for all States
All Business Documents, Inc., Business Services - General, San Francisco, CA

What is Corporate Stock?

Corporate Stock is used by Corporations as a way to raise capital. Anyone who buys Corporate Stock becomes a partial owner of the Corporation which issued the Corporate Stock. Each share of Corporate Stock owned by an investor represents a proportionate share of interest in that Corporation.

Anyone who owns Corporate Stock is called a Shareholder of the Corporation.

A Corporation normally retains at least 51% of its Corporate Stock. The remaining shares of Corporate Stock are sold directly by the Corporation to purchasers or on the open market through stock brokers. Some shares of Corporate Stock are given directly to employees of the Corporation.

If one Shareholder owns more than 50% of all available Corporate Stock then that Shareholder will be able to determine the way in which the Corporation conducts business. This is the reason why Corporations try to own (or control) more than half of their Corporate Stock. A Shareholder who owns more than 50% of the Corporate Stock is called the Controlling or Majority Shareholder.

Corporations used to issue paper Stock Certificates to anyone that purchased their Corporate Stock but now days most Corporate Stock purchase information is stored in computerized databases.

In return for purchasing Corporate Stock in the Corporation, the purchaser may be entitled to voting rights or dividends of the Corporation's profits depending on the type of Corporate Stock.


EXAMPLE OF A CORPORATE STOCK CERTIFICATE

Corporate Stock is usually divided into two categories, Common Stock and Preferred Stock. Some states also recognize an Undesignated Stock category.

Corporate Stock is sometimes called Equity Security
CORPORATE GLOSSARY
 
Administrative Dissolution
Agent for Service of Process
Apostille
Apportionment
Articles of Incorporation
Articles of Organization
Assumed Name
At Will LLC
Authorized Shares
B Corporation
Benefit Corporation
Board of Directors
Business Dissolution
Business Entity
Bylaws
Certificate of Existence
Certificate of Status
Certified Copy
Close Corporation
Common Stock
Conversion
Corporate Bylaws
Corporate Name Reservation
Corporate Stock
DBA
Disregarded Entity
Dividends
ESOP
Excise Tax
Federal Tax ID
Ficticious Name
Foreign Qualification
Franchise Tax
General Partnership
Good Standing Certificate
Incorporator
Involuntary Dissolution
IRS Form 966
ITIN
Limited Liability Company
Limited Partnership
Liquidation
LLC
LP
Majority Shareholder
Meetings
Merger
Nexus
Non-Stock Corporation
Nonprofit Corporation
Obligated Member LLC
Organizer
Paid-in Capital
Paid-in Surplus
Par Value
Personal Service Corporation
Preferred Stock
Privilege Tax
Professional Corporation
Professional Service
Proxy
Registered Agent
Registered Office
Reporting Requirements
Revocation
S Corporation
Series LLC
Service Mark
Shareholder
Sole Proprietor
Stated Capital
Statutory Agent
Stock Certificate
Term LLC
Trade Name
Trademark
Trust
Trustee
Winding Up
All Business Documents, Inc. is not a lawyer or an accountant and provides only document filing and retrieval services under your supervision.
All content and design copyright © 2003- All Business Documents, Inc. All Rights Reserved.
Privacy Policy Site Map Contact us