Common and Preferred Shares

The video tutorial explains the concept of shares in a corporation, focusing on common and preferred shares. It covers the reasons for having shares, the process of authorizing them during the formation of a corporation, and the differences between common and preferred shares. Preferred shares offer specific rights to investors, which can include voting rights, dividend preferences, and conversion rights. The tutorial also discusses how these shares are documented in the articles of incorporation and bylaws.

What are common shares and why are they important for a corporation?

When do you authorize or create shares in a corporation?

What is the difference between authorized shares and distributed shares?

What are preferred shares and how do they differ from common shares?

How does the issuance of preferred shares affect existing shareholders?

What specific rights can be associated with preferred shares?

What steps must be taken to amend the articles of organization to include preferred shares?