To maximize profit. By U.S. law a corporation must do what it thinks will increase revenue and stock holders return.
To assign special priviledges to those shares.... be it voting rights, par value, etc. (Only possible with a C Corporation, multiple classes of stock are not permitted with S-Corporations).
Yes
Preferred stock generally has a dividend that must be paid out before dividends to common stockholders and the shares usually do not have voting rights. The precise details as to the structure of preferred stock is specific to each corporation.
seal says astra corporation Massachusetts 1961 common stock #7821
Board of directors
commen stock holders
The board of trustees of the corporation choose their president. The stock-holders elect the board of trustees.
stock holders.
A common stock gives the investor part ownership in the corporation, right to a percentage of the company's future profits and voting rights at the annual stockholders' meeting. With preferred stock the holder does not have voting rights in the corporation. The holder however, are guaranteed a certain amount of dividend each year.
To maximize profit. By U.S. law a corporation must do what it thinks will increase revenue and stock holders return.
preferred stock holders will be the "prefered" holders when/if it came to liquidation. They would be the first to receive whatever values they could be paid in favor of the common stock holders. After the prefered holders have been paid however many pennys on a dollar on their stocks, the common holders would then receive there returns. Usually there is NONE left.......
Ford Motors is a publicly traded corporation with a great many stock holders.
State Farm is formed as a Stock Company (Corporation). So it's owned by it' stock holders.
To assign special priviledges to those shares.... be it voting rights, par value, etc. (Only possible with a C Corporation, multiple classes of stock are not permitted with S-Corporations).
Common stockPreferred stockCommon stock is usually what is issued to the general public. The term common Stock doesn't carry any negative connotations, but rather indicates that it is the "standard" stock the company has offered. Common shareholders have voting rights.And as the word suggests, "Preferred" stock has certain advantages over common stock.First, preferred share holders are paid dividends on their stock market investment before common share holders. And if a company isn't doing well, the Common stock dividend is eliminated first.Second, is if a company goes out of business, the owners of preferred shares have prior claim to any assets that remain when the company is dissolved and after bond holders and other creditors have been paid.Owners of common stock are the last in line to pick up the pieces of the fallen corporation.
Yes