Solve Your Sleep Problems In 7 Steps

The capital stock of a corporation is the amount of its authorized stock. It need not be large, because Capital a large business enterprise, as in the case of stock. t k e Equitable Life Insurance Company, may Be carried on with a small amount of capital stock. For the sake of convenience in estimating the interests of stockholders and in facilitating transfer of ownership, capital stock is divided into equal parts called shares Of stock. A person owning one or more shares of stock is a stockholder. As evidence of own- stockership, he is entitled to a stock certifi- holder cate. A certificate signed by the president and secretary or president and treasurer and bearing the corporation seal states the number of shares stock cerowned and the special conditions, if any, tificate governing the stock in question. A share of stock gives the owner a voice in the management, an interest in the profits and a proportionate share in the ultimate assets of a corporation. A stockholder has an undivided interest in the business. He is not entitled to any particular part, but owns a proportionate share in all assets combined. Many states allow with proper charter provisions the issuing of stock without voting power. Unless it is allowed by statute and provided for in the charter, every owner of record enjoys the usual voting power and may exercise it in person or by proxy. Four methods are used in issuing stock. First, stock may be issued on subscription payable in cash. Methods of This is the simplest and safest method of issu- issuing ing stock. The subscription is usually made in writing and signed, then the future payment may be enforced by law. Secondly, stock may be issued on subfor labor, property, or any valuable considera- scri P tion tion other than money. This method must first be authorized by statute, and care should be taken that whatever is given for stock is not overvalued. Thirdly, stock may be issued as a stock dividend....