Common stock is what most company investors purchase from the stock market. A single share of common stock comes with voting rights, capital appreciation and dividend income if the company that issued the share offers the benefits. If there is a corporate liquidation during a bankruptcy, the common shareholder is unfortunately the last to receive compensation. Usually, if the company goes out of business, the common stock becomes worthless. If you accumulate enough shares of common stock, a hostile takeover is an option provided you own a majority of the shares and can convince board members to vote for the takeover.
Issuing common stock is a great way to raise capital for expansion without having to borrow money. You accomplish this through an initial public offering or IPO. The downside is that you have to answer to shareholders and no longer have total control of the business. Whatever your interest in common stock advice, there are certainly items to consider before issuing or purchasing shares on the open market:
1. Learn to value common stock.
2. Contact a consultant for common stock if your company wishes to issue shares.
3. Purchase shares through a common stock expert.
Action Steps
The best contacts and resources to help you get it done
Conduct an assessment of the common stock information
Whether you are issuing or purchasing common stock, it is a good idea to learn how to value the shares. There are different types of valuations and the forces of the free market will always have an effect on the common stock shares. Even though valuations are not perfect, it is always better to know the ballpark pricing for common stock prior to purchase or issue.
I recommend: Take the common stock valuation tutorial from
Understand Finance. Purchase the software package from
Value Pro to help you price common stock.
Engage the services of a common stock expert to help issue shares
Deciding to take your company public is a momentous business decision and one that requires the services of a company with experience in the process. The process is complicated and the common stock information involved when issuing shares requires the services of professional underwriters.
I recommend: Contact the investment banking divisions of
Merrill Lynch or
JP Morgan Chase for further common stock information and assistance.
Seek the common stock consulting services of investment professionals
If your company wishes to purchase shares of common stock whether for your company-sponsored retirement program, asset appreciation or hostile takeover attempt, the advice of a stock market professional is imperative.
I recommend: Find an
Ameriprise consultant for common stock information in your area. Contact the investment professionals at
Lehman Brothers for comparative investment guidance on the purchase of common stock.
Tips & Tactics
Helpful advice for making the most of this Guide
- Whenever you purchase or issue common stock, it is prudent to factor in stock market conditions. Sometimes when the market is performing poorly, it can affect the returns of a particular common stock through no fault of the company or the issuer. In other words, you should issue common stock in a positive market and purchase stock in a negative market, when common stocks are cheaper.
The official source of Common Stock is the Common Stock page at Business.com
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