Simple English definitions for legal terms

common stock

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A quick definition of common stock:

Common stock is a type of ownership in a company. People who own common stock are called shareholders. They have the right to vote for who will be on the company's board of directors. They also have the right to get a share of the company's profits, called dividends, when the board of directors decides to pay them. If the company goes out of business, shareholders may get some of the money left over after the company pays its debts and other obligations.

A more thorough explanation:

Common stock is a type of stock that represents ownership in a company. People who own common stock are called shareholders and they have certain rights:

  • Voting rights: Shareholders can vote to elect the members of the board of directors. Usually, each share of common stock gives the shareholder one vote. However, this can be changed in the company's charter.
  • Dividends: Shareholders may receive a portion of the company's profits in the form of dividends. The company's board of directors decides when to pay dividends and how much to pay.
  • Asset ownership: If the company goes bankrupt and has to sell its assets, shareholders may have a claim to some of the money from the sale. However, creditors and owners of preferred stock get paid first.

For example, let's say you own 100 shares of common stock in a company. You would have the right to vote for the board of directors, and if the company made a profit, you might receive a dividend. If the company went bankrupt and had to sell its assets, you might be able to get some of the money from the sale, but only after the creditors and preferred stock owners were paid.

common property | communications


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gulc said they'll get back to me by the week of june 17th
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has anyone on GW waitlist heard anything?
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Hello everyone. Is it easy to miss important information about your admissions results if you don’t add your law school admission office to your Gmail contact? Did you find any important email from law school in your junk mail?
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@BelligerentMagicalWarthog: anecdote but a friend of mine got off the gulc waitlist in July last year
Write a poem rizzing up the admission staff
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More things to worry about over the weekend nice....
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I always think back to when I was anxious waiting for my lsat results one take. I went to the park and a parent let me play with their kid. I fixed his truck and he was hyped! He told me to “have a good time!” when I left haha. He’s our spirit animal!
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@Zenaida-Macroura: I got admitted to a school on a sunday once
@menherachan: ok first of best of luck!! second off did they tell you that like in a feeler or when you reached out to them or like some other way?
@KnowledgeableRitzyWasp: i think its so cool when you say the schools im WL'ed by still have room
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okay guys if you were making a love songs playlist what would you put on it?
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