Stocks issues may vary voting rights , preferences , privileges , and restrictions as may provided by the articles of incorporation.

COMMON STOCK represents the basic issue of shares and has all the basic rights of a share.

Common stocks feature: VOTING RIGHT Conceptual structure of the corporation assumes that the share holders elect directors who , in turn, hire management to carry out their directives.

SHAREHOLDERS Control the corporation through the right to elect the directors.

Directors are elected at an annual shareholders meeting by a vote of the holders of a majority of shares who are present and entitled to vote.

CUMULATIVE VOTING A procedure in which a shareholder may cast all votes for one member of the board of directors.

STRAIGHT VOTING A procedure in which a shareholder may cast all votes for each member of the board of directors.

PROXY VOTING A grant of authority by a shareholders allowing another individual to vote his shares. Voting in large public corporations is actually done by proxy.

-Right to share proportionally in dividends paid. -Right to share proportionally in assets remaining after liablities have been paid in a liquidation. -Right to vote on stockholders matter of great importance , such as merger. -Right to share proportionally in any new stock sold , before offering it to the general public , called pre emptive right.

PREFFERED STOCK Class of stock with preferences over common shares , including distribution of dividends and corporate assets upon dissolution of the corporation.

STATED VALUE It has a stated liquidating value per share. The cash dividends is describe in terms of peso amount per share. Example: ABC Corporation 10Preffered easily translates into a dividend yield to ten percent of stated value .

DIVIDENDS
Types given are either cumulative or non cumulative. If preffered dividends are cumulative and are not paid in a particular year, they will be carried forward as an arreange. Usually,both the accumulated (past)preffered dividends and the current preffered dividends must be paid before the common shareholders can received payments.

UNPAID PREFFERED DIVIDENDS can be granted voting rights , or to nominate people to represent their interests on the board.

Stocks either: Class A- shares are for Filipinos. Class B- are for foreigner investor. Founders shares are classified as such in the articles of incorporation and maybe given certain rights and privileges not enjoyed by stockholders.

PAR VALUE Share capital of stock that have been assigned a definite or fixed value in the article of incorporation so as to fix the minimum subscription or original issue price.

NO PAR VALUE Shares are those that not have been assigned a definite or fixed value .They may assigned a stated value to serve as the minimum issue price.

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