A corporation's stock is represented by certificates. These certificates are often pledged as collateral for loans. Stock is either "preferred" or "common." The preference is usually one as to dividends but may be merely as to assets on dissolution or in voting powers. Dividends are paid on preferred stock before the common stockholders receive anything. The most common way is to give the "preferred stock" the first claim upon earnings up to a certain per cent. Thus the preferred stock may state that it is entitled to receive 8% per annum before the common stock receives anything. Usually, preferred stock sells higher than the common, but if the corporation's earnings are so big that the common stock receives a higher dividend than the preferred, then the common stock will quite likely sell at a higher price. Stock may be transferred from one person to another. A voting trust is an arrangement by which some or all of the stockholders transfer their shares to trustees, who have stock certificates made out to themselves as trustees. The trustees thus have the right to vote, while the real owners get whatever dividends are declared.

Power To Vote Stock- Proxy

Know all Men by these Presents, That I, .............................................................................

do hereby constitute and appoint John Rice, George Laight and Harry M. See, or either of them, Attorney and Agent for me, and in my name, place and stead, to attend and vote as my proxy at the (state whether annual or special meeting) meeting of the

Stockholders of...............Trust Company, to be held on Thursday, August 17, 1922; and at any and all adjournments thereof, with full power and authority to act and vote for me in all respects at the said meeting and at any and all adjournments thereof, for the (here state purpose of meeting), and upon all other business which may properly be brought before the said meeting, according to the number of votes which I should be entitled to vote if then personally present...............................

In Witness Whereof, I have hereunto set my hand and seal this...........................day of

.........................., one thousand nine hundred and twenty-two.

...................................[Seal]

Witness:

...........................................

The directors may declare dividends, if they have been earned, at their own discretion, and will not be interfered with by the courts in this respect unless they act fraudulently or oppressively. After the directors have declared a dividend the corporation owes it as a debt to the stockholder, who can sue the corporation for the amount due. The stockholder has the right to vote at the meetings of the corporation. He can usually vote by proxy if he desires. This means authorizing some one else to vote his stock for him. This document (proxy) does not have to be acknowledged before a notary public, but it should be witnessed.