Common stock, Management Theories

Common Stock:

Certificates that present ownership to corporation usually mature stock shareholders have the right to vote for the election of commercial directors. In privately held organizations they may also elect the commercial officers. Organizations may issue several classes of ordinary stock; some with voting rights, some without. Holders of common stock normally do not have any right to receive dividends, although if an organizations income permit, the board of directors may elect to describe a common stock extra, either in cash or in additional shares.  Common stock may be issued with a par value or with no par value. In either case, it is recorded in the stock- holder's equity section of the balance sheet.



Posted Date: 10/15/2012 8:15:49 AM | Location : United States

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