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Finance Concepts Videos 809 videos

Finance: What's the Difference Between Federal and State Taxes?
145 Views

What is the difference between federal and state taxes? Federal taxes: the whole country. Taxes for national defense, interstate roadways, national...

Finance: What's the Difference Between Stocks and Bonds?
186 Views

What is the difference between stocks and bonds? Stocks are ownership. They control the election of the board of directors, who hires the CEO, who...

Finance: What Rights Does a Public Stockholder Have?
67 Views

What rights does a public stockholder have? Common shareholders elect the board of directors. They vote. They have the right to quarterly financial...

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Finance: What is Common Stock? 379 Views


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Description:

What is common stock? Ownership. Common shareholders own a pro rata slice of the pie. They elect the board of directors by vote. Some companies have super-voting stock, which gets multiple votes per share, so that whiny founders can continue to control company boards.

Language:
English Language

Transcript

00:03

Finance a la shmoop what is common stock well, common stock

00:08

simply put is ownership common stock ownership is a foundation of what [Businesssmen and women in a meeting fighting for control]

00:12

comprises control in a corporation it's the common stock that elects the board

00:17

of directors who then hires the CEO who then you know hires everyone else so [The organizational chart of a corporation]

00:22

yeah when someone owns a share they own a teeny tiny piece of a company the more

00:26

shares they own well the more of a voice they have in the management of that [Company building crumbles to the floor]

00:30

company so someone who has 51% of the shares in a company will actually have a

00:34

lot to say in the election of a Board of Directors for example where someone with [Member of the board with 51% shouting orders at other members]

00:38

the small percentage of shares still has a voice but it's a small squeaky one in

00:44

a bankruptcy situation common stock sits at the very bottom of the stack of

00:48

priorities in being paid back a company that's going bankrupt will start by [Examples of priority stack with IRS obligations first]

00:52

paying any IRS obligations, yeah the IRS always wins then they'll pay

00:56

employees their salaries and they'll pay any vendors who are owed money then

00:59

they'll pay off bank loans and they'll pay back preferred stock and finally at

01:03

the very bottom there if there are a few nickels and dimes left over they'll pay [Man emptying nickels and dimes from jean pocket]

01:07

common stockholders back but shares you hear quoted from Apple and Amazon and

01:11

bathmats are us are all just common stock being traded on NASDAQ or the New [Apple, Amazon and Bathmats R Us stock prices displayed on NASDAQ screens]

01:16

York Stock Exchange or other places which are owned by millions and millions

01:20

of common and uncommon people [A strange person wearing shoes for gloves in a busy office]

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