Capital Stock
Variety of Ownership Interests
- “Basic” ownership interest--Common Stock (C/S)
- No stated return.
- No promise upon liquidation.
- Right to vote--multiple classes with different rights.
- Preferred Stock (P/S)--higher claims on the assets.
- No vote.
- Stated return if declared.
- Usually cumulative; arrearages possible.
- Callable; convertible.