Common Stock

Common Stock

Common Stock means:
security representing an ownership interest in a corporation. Ownership may also be shared with preferred stock, which has prior claim on any dividends to be paid and, in the event of liquidation, to the distribution of the corporation's assets. Dividends from common stock are generally taxed as ordinary income. Former IRC (check if this IRC provision is current here) §7701(a)(7).

U.S. and other Developed Countries International Tax Meaning

The ordinary stock of a corporation. An equity or ownership interest in a corporation. The holder of common stock usually has a vote in deciding company affairs. Common stock is usually last in priority when profits or assets are distributed.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.

Description and Definition of Common Stock

A certificate representing ownership as a shareholder in a corporation. In a liquidation common stockholders are the last to get paid, if at all.


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