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Different Types of Stocks Issued by Corporations Stocks and Corporations. There are several reasons why a corporation issues stock to raise money. ... Common Stock. ... Common Growth Stock. ... Common Income Stock. ... Preferred Stock. ... Callable Preferred Stock. ... Convertible Preferred Stock.
Common shares represent residual ownership in a company and in the event of liquidation or dividend payments, common shares can only receive payments after preferred shareholders have been paid first.
The corporation is not obliged to issue all authorized shares, but it may not issue more than the total without amending the articles of incorporation. The total of stock sold to investors is the issued stock of the corporation; the issued stock in the hands of all shareholders is called outstanding stock.
Authorized shares. The number of shares that the corporation may issue is called authorized shares. The portion of authorized shares that has been sold to shareholders is called issued shares. Outstanding shares are total number of shares in circulation, meaning they are issued shares minus treasury stock.
What Are Stocks? A stock, also known as equity, is a security that represents the ownership of a fraction of the issuing corporation. Units of stock are called "shares" which entitles the owner to a proportion of the corporation's assets and profits equal to how much stock they own.
Common stock - also called common shares, capital shares, or capital stock - represents units of ownership in a corporation. Purchasers of common stock are granted specific rights that may include the following: Voting at stockholder meetings. Selling or otherwise disposing of stock.