ShmoopTube

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

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

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

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

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

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

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

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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]

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

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

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

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

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

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

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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]

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

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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]

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

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

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