Common stock is a security issued by a company. It is representative of the value of one of the equal fractions of its capital. Normally the shares are transferable without restriction.
Shares are securities like bonds. The difference between a stock and a bond or obligation is that the stock gives ownership of the assets of a company in the proportion that represents the nominal value of the share on the total share capital. While a bond or obligation confers only a receivable on the debt of the company that issued it.
The holder of bonds or debentures of a company is a creditor of the same, and is entitled, after the deadline agreed to a refund of the amount paid plus interest. Bonds are considered fixed-income investments.
However, the holder of a stock is the owner of the company in the proportion that represents the capital invested. Therefore, assumes a greater risk of depreciation of the investment if the company does not profit, and greater appreciation of their investment if the company makes profits. Sole trader bookkeeping does entail any stock considerations.
The buyback is a figure provided by various commercial laws that allows the company to buy back its own shares. Exceptions, as for example with preferred shares a common share gives its holder the right to cast a vote in the shareholders meeting. This Board is responsible for appointing an administrator or a board of directors for the company and makes strategic decisions. Therefore, the more shares you have, the more voting power you receive.
In general, and unless there are statutory covenants that limit the control of a company by a single shareholder, to exercise control of any company incorporated by shares you need to own the call absolute majority, ie more than 50% of total shares that are in circulation.
However, in practice, and in large companies enough to have between 15 and 20% of capital to exercise a decisive influence on the direction of the company. In some cases, they make exceptions to the general rule that a share has voting rights: It may issue shares without voting rights, economic rights, but not political. You can set qualified majorities for certain decisions (liquidation of the company, capital, mergers and acquisitions).
You can limit the maximum number of votes per person. The forms of share representation are bearer securities: You can exercise the rights attached to a share holding the title. Nominative : The owner of the shares must be fully identified for transmission is necessary to make a formal assignment, which must be recorded in the register of shareholders, to be maintained in the issuer of the securities.