Colorado Preferred Stock Certificate

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Multi-State
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US-1080BG
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Description

Preferred stock is a class of shares of stock in a corporation which gives the holders priority in payment of dividends and distribution of assets in case of dissolution of the corporation over owners of "common" stock. Preferred stock shareholders do not participate in higher dividends if the corporation makes large profits, and usually cannot vote for directors. Also unlike common stock, a preferred stock pays a fixed dividend that does not vary, although the company does not have to pay this dividend if it lacks the financial ability to do so. The dividends paid to preferred shares are deducted as an expense because they are required payments, unlike the common stock dividend which is just a sharing in part of the profits. Like common stock, preferred stocks represent partial ownership in a company. A stock certificate must be in writing and signed by the designated corporate officers. It is contractual in nature, since it either sets forth or incorporates by reference the rights, privileges, and duties of the corporation and of the stockholder, both in their relationship to each other and to other stockholders.
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FAQ

A preferred stock certificate is a document that identifies the ownership share of an investor in a corporation.

An account designation is the name given to an investment account where shares cannot be directly held by the beneficial owner (e.g. a minor) and instead, are registered in the name of a trustee (e.g. a parent).

A preferred stock certificate is a document that identifies the ownership share of an investor in a corporation.

Preferred Designation means that certain amended and restated certificate of designation of rights and preferences relating to the Preferred Stock to be filed with the Delaware Secretary of State on or before closing, in the form attached hereto as Exhibit A.

To fill out a stock certificate, you fill in the name of the shareholder, the name of the corporation, the number of shares represented by the certificate, the date, and possibly an identification number. There is also a space for a corporate officer to sign on behalf of the corporation and to affix the corporate seal.

A certificate which contains a copy of the board resolution setting out the powers, designations, preferences or rights of a class or series of a class of stock of a corporation (typically a series of preferred stock) if they are not already contained in the certificate of incorporation of the corporation.

Designated Stock means the Class A Common Stock, the Class C Common Stock and any other stock of the Corporation that is designated as ?Designated Stock? from time to time pursuant to this Certificate of Incorporation or any Certificate of Designation.

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Colorado Preferred Stock Certificate