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View Full Version : Stock, what kind of stock do I have.


Vineyard Haven
Mar 7, 2009, 11:31 AM
I have been issued X amount of stock in a start up company and I do not understand what I have. The stock certificate is for X amount of shares without par value, common stock, fully paid and non-assessable shares of the above Corporation transferable only on the books of the Corporation by the holder herein in person or by duly authorized Attorney upon surrender of this Certificate properly endorsed.

Would appreciate it if someone could explain to me what I have.

excon
Mar 7, 2009, 11:42 AM
Hello V:

There are two kinds of stock, common and preferred. Here's the difference:

Preferred stock, also called preferred shares or preference shares, is typically a 'higher ranking' stock than voting shares, and its terms are negotiated between the corporation and the investor.

Preferred stock usually carries no voting rights, but may carry superior priority over common stock in the payment of dividends and upon liquidation.

Preferred stock may carry a dividend that is paid out prior to any dividends being paid to common stock holders.

Preferred stock may have a convertibility feature into common stock.

Preferred stockholders will be paid out in assets before common stockholders and after debt holders in bankruptcy.
Beyond that, what do you want to know? Can you sell it? If you can find a buyer, probably. But, there may be limitations on the agreement you have with the corp. I don't know what THAT might be.

How much is it worth? Whatever somebody will pay you for it.

excon