business law

stock certificate

A stock certificate is a printed certificate issued by a corporation to a shareholder, documenting ownership in a stated number of shares of that corporation's stock. It must be noted that generally the courts consider stock certificates...

stock dividend

A Stock dividend refers to corporate dividends compensating shareholders or employees in the form of stocks instead of money. Companies issue stock dividends typically in the form of a certain percentage per share. For example, a company may...

stock in trade

Stock in trade may be used to refer to the inventory held by a business for sale in the ordinary course of business, or the equipment, materials, and tools required for the performance of a trade (tools of trade).

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stock option

Definition from Nolo’s Plain-English Law DictionaryThe right to purchase stock in the future at a price set at the time the option is granted (by sale or as compensation by the corporation). To actually obtain the shares of stock the owner of the option...

stock purchase agreement

A stock purchase agreement is a contract under which a seller transfers stock of a corporation to a buyer.

Although the content of a stock purchase agreement may vary in complexity depending on the sophistication of the...

stockholder

A stockholder, also called a shareholder, is a person who owns stock in a corporation.

The stockholder has several rights; including the right to vote for board members, the right of receiving interest and dividends from...

stockholder's derivative action

A stockholder's derivative action, also referred to as a shareholder derivative suit, is a lawsuit brought by a shareholder or group of shareholders on behalf of the corporation against the corporation’s directors, officers, or other third...

straw man

Straw man is a third party that holds property in intermission for the sole purpose of transferring it to another. In property law, a straw man would be the person whom a grantor transfers land to for some reason; (sometimes known as a "front...

Subchapter S corporation

Subchapter S corporations, or S corporations, are corporations that are taxed on a "flow -through" basis. This means that tax liabilities from income (or deductions from losses) are passed onto the corporations' shareholders to be declared...

subcontractor

A subcontractor is a person or entity that has been awarded by the general contractor the performance of part of the work or services of an existing contract entered between the general contractor and the (original) contracting party....

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