Should I Elect to Issue 1244 Stock in My Corporation?
Full Question:
Answer:
Consideration is generally the value given in exchange for something. For example, the consideration for a share of stock may be the purchase price paid for the stock. Common stock is the basic equity interest in a company. It is typically the type of stock held by founders and employees. Common stock represents equity ownership in a corporation, providing voting rights, and entitling the holder to a share of the company's success through dividends and/or capital appreciation. In the event of liquidation, common stockholders have rights to company assets but only after bondholders, other debt holders and preferred stockholders have been satisfied. Typically, common stockholders receive one vote per share to elect the company's board of directors.
Please see the information at the following links for further discussion:
http://www.maxfilings.com/incorporation-knowledge-center/section-1244-stock.php
http://www.wisegeek.com/what-is-1244-stock.htm