Common Stock

Equity ownership in a corporation carrying the right to vote, receive dividends if declared, inspect books, maintain proportionate ownership (preemptive rights), and claim residual assets last in a liquidation.

Authorized shares are the maximum the charter permits; issued shares have been sold; outstanding shares are issued minus treasury stock. Statutory voting allows one vote per share per board seat, while cumulative voting lets shareholders concentrate votes — an advantage for small investors.

Related terms

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