The number of shares to be authorized, classes of shares, series and the par value or a statement that shares are without par value must be stated in the articles. Corporations must designate either common or preferred shares for the stocks issued. A corporation may issue common and preferred stock, but if only one class of stock is issued, it must be referred to as common. The two classes of stock differ in designation, rights or preferences.
Common stock represents part of ownership received in exchange for investment.
Preferred stock represents ownership with certain preferences as to earnings and assets in case of liquidation. Series stock may be authorized within a class. Each series may differ as to preferences and rights such as rate of dividend or redemption conditions. Corporations issuing series stock may need to seek legal advice. The consideration for issued shares may be paid in money, property, labor or services performed for the corporation.