Connecticut Preferred Stock Certificate

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Multi-State
Control #:
US-1080BG
Format:
Word; 
Rich Text
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Description

Preferred stock is a class of shares of stock in a corporation which gives the holders priority in payment of dividends and distribution of assets in case of dissolution of the corporation over owners of "common" stock. Preferred stock shareholders do not participate in higher dividends if the corporation makes large profits, and usually cannot vote for directors. Also unlike common stock, a preferred stock pays a fixed dividend that does not vary, although the company does not have to pay this dividend if it lacks the financial ability to do so. The dividends paid to preferred shares are deducted as an expense because they are required payments, unlike the common stock dividend which is just a sharing in part of the profits. Like common stock, preferred stocks represent partial ownership in a company. A stock certificate must be in writing and signed by the designated corporate officers. It is contractual in nature, since it either sets forth or incorporates by reference the rights, privileges, and duties of the corporation and of the stockholder, both in their relationship to each other and to other stockholders.
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FAQ

A preferred stock certificate is a document that identifies the ownership share of an investor in a corporation.

Your local library may have print and online sources that will help you find out, in what form, and if its stock still has value. You can do a quick check on free stock market quote services, such as: Big Charts. Over the Counter Bulletin Board (OTCBB)

The four main types of preference shares are callable shares, convertible shares, cumulative shares, and participatory shares. Each type of preferred share has unique features that may benefit either the shareholder or the issuer.

Stock Designation with respect to a share of Company Common Stock means a designation by the holder of such share, provided by the Company to Parent no later than the Designation Deadline, to the effect that such share is designated to receive the Stock Designation Consideration.

There are many resources on the internet. Some resources will trace the history of stock certificates and companies to determine whether or not the stock certificate has any value. Some resources provide research services for a fee.

An account designation is the name given to an investment account where shares cannot be directly held by the beneficial owner (e.g. a minor) and instead, are registered in the name of a trustee (e.g. a parent).

A certificate of designation is signed by a corporate officer attesting to the board of directors' designation of the terms, rights, preferences, and limitations of a new series of preferred stock.

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Connecticut Preferred Stock Certificate