Classification of Shares

Important Terms

1. Common Shares 2. Preferred Shares 3. Voting Shares 4. Non-voting shares 5. Share in escrow 6. Over-issued stock 7. Watered stock 8. Par value shares 9. No par value shares 10. Convertible share 11. Fractional share 12. Promotion share 13. Founders shares 14. Redeemable shares 15. Treasury shares

1. Capital stock -amount fixed in the corporate charter to be subscribed and paid in cash, kind or property at the organization of the corporation or afterwards and upon which the corporation is to conduct its operation 2. Capital -value of the actual property or estate of the corporation 3. Authorized capital stock -amount fixed in the AOI that may be subscribed and paid by the stockholders of the corporation 4. Subscribed capital stock -total amount of the capital subscribed whether fully paid or not stock

5. Outstanding capital stock -portion of the capital stock issued to subscribers, whether fully or partially paid 6. Unissued capital stock -capital stock that is not issued or subscribed and has no legal rights 7. Legal capital -amount equal to the aggregate par value and/or issued value of the outstanding capital stock 8. Stated capital -capital stock divided into no par value shares 9. Paid-up capital -amount paid by the stockholders on subscriptions from unissued shares of the corporation