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Common?stock is called common stock when all classes have same rights and privileges. stock. 5. Par value stock?assigned a value per share by the corporation in its charter.
A corporation can sell stock directly or indirectly. To sell directly, it advertises its stock issuance to potential buyers. This type of issuance is most common with privately held corporations. To sell indirectly, a corporation pays a brokerage house (investment banker) to issue its stock.
The correct answer is Option (a) Publicly held and privately held. Corporation is majorly defined by the ownership of the entity and this ownership can only be determined by the number of share being held by private groups and promoters or the general public.
A corporation can pay a brokerage house to issue its stock. Some brokerage houses underwrite an indirect issuance of stock; they buy the stock from the corporation and resale it to investors. Martin, Inc.'s charter authorizes 50,000 shares of stock with a par value of $1 per share.
Shares of capital stock give ownership in a corporation. These shares are transferable units. Stockholders may dispose of part or all of their interest in a corporation simply by selling their stock. In a partnership, the transfer of an ownership interest requires the consent of each owner.
A shareholder is any person, company, or institution that owns shares in a company's stock. A company shareholder can hold as little as one share. Shareholders are subject to capital gains (or losses) and/or dividend payments as residual claimants on a firm's profits.
Hence, limited period of existence and centralized management are not typical characteristics of a corporation.
????? Shareholders: Owners of the corporation in proportion to their ownership of corporate stock outstanding. These people may be the same (ie., a director, officer and shareholder), but usually not.