Stock shares come in different classes of stock. If a corporation ends up in financial trouble, it's required to pay off its liabilities. If any money is left over, then that money goes first to the preferred stockholders.
A corporation's "birth certificate" is the legal form that is filed with the Secretary of State of the state in which the corporation is created, or incorporated. The bank can't come after the stockholders if a corporation goes bankrupt.
A corporation issues ownership share to persons who invest money in the business. Owners of a corporation are called stockholders because they own shares of stock issued by the corporation.
The most common type of business when there are multiple owners is a corporation. The law sees a corporation as real, live person. A corporation's "birth certificate" is the legal form that is filed with the Secretary of State of the state in which the corporation is created, or incorporated.
A corporation is separate from its owners. It's responsible for its own debts. If a corporation goes bankrupt, the bank can't come after the stockholders.
A corporation issues ownership share to persons who invest money in the business. Owners of a corporation are called stockholders because they own shares of stock issued by the corporation. One share of stock is one unit of ownership; how much one share is worth depends on the total number of shares that the business issues.
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