KFLCC Kingdom Law 2nd Ed.

1111

STOCK

STIPULATION

Civ. App. 382, 44 S. W. 906; Bnrrall T. Bushwick R. Co., 75 N. Y. 216; State v. Lewis, 118 Wis. 432, 95 N. W. 388; Heller v. National Marine Bank, 89 Md. 602, 43 Atl. 800, 45 K R. A. 438, 73 Am. St. Rep. 212; Trask v. Maguire, 18 Wall. 402, 21 L. Ed. 938; Harrison v. Vines, 46 Tex. 15. The funded indebtedness of a state or gov ernment, also, is often represented by stocks, shares of which are held by its creditors at Interest In the law of descent. The term is used, metaphorically, to denote the original pro genitor of a family, or the ancestor from whom the persons in question are all descend ed; such descendants being called "branch es." Classes of corporate stock. Preferred stock is a separate portion or class of the stock of a corporation, which is accorded, by the charter or by-laws, a preference or priority in respect to dividends, over the re mainder of the stock of the corporation, which in that case is called "common" stock. That Is, holders of the preferred stock are entitled to receive dividends at a fixed an nual rate, out of the net earnings or profits of the corporation, before any distribution of earnings is made to the common stock. If the earnings applicable to the payment of dividends are not more than sufficient for such fixed annual dividend, they will be en tirely absorbed by the preferred stock. If they are more than sufficient for the purpose, the remainder may be given entirely to the common stock (which is the more usual cus tom) or such remainder may be distributed pro rata to both classes of the stock, in which case the preferred stock is said to "partici pate" with the common. The fixed dividend on preferred stock may be "cumulative" or "non-cumulative." In the former case, If the stipulated dividend on preferred stock is not earned or paid in any one year, it becomes a charge upon the surplus earnings of the next and succeeding years, and all such accumu lated and unpaid dividends on the preferred stock must be paid off before the common stock is entitled to receive dividends. In the case of "non-cumulative" preferred stock, Its preference for any given year is extin guished by the failure to earn or pay its divi dend in that year. If a corporation has no class of preferred stock, all its stock is com mon stock. The word "common" in this con nection signifies that all the holders of such stock are entitled to an equal pro rata division of profits or net earnings, if any there be, without any preference or priority among themselves. "Deferred" stock is rare ly issued by American corporations, though it is not uncommon in England. This kind of stock Is distinguished by the fact that the payment of dividends upon it Is expressly postponed until some other class of stock has received a dividend, or until some certain liability or obligation of the corporation is

or, with a view to their being released or dis charged by an acoeptilatio, that mode of dis charge being applicable only to the verbal con tract. Brown. STIPULATION. A material article In an agreement. In practice. An engagement or under taking in writing, to do a certain act; as to try a cause at a certain time. 1 Burrill, Pr. 389. The name "stipulation" is familiarly given to any agreement made by the attorneys en gaged on opposite sides of a cause, (especially if in writing,) regulating any matter inci dental to the proceedings or trial, which falls within their jurisdiction. Such, for instance, are agreements to extend the time for plead ing, to* take depositions, to waive objections, to admit certain facts, to continue the cause. See Lewis v. Orpheus, 15 Fed. Cas. 492. In admiralty practioe. A recognizance of certain persons (called in the old law "fide jussors") in the nature of bail for the ap pearance of a defendant 3 Bl. Comm. 108. In the civil law. The party who asked the question in the contract of stipulation; the other party, or he who an swered, being called the "promissor." But, in a more general sense, the term was ap plied to both the parties. Calvin. STIRPS. Lat. A root or stock of descent or title. Taking property by right of repre sentation is called "succession per stirpes," in opposition to taking in one's own right, or as a principal, which is termed "taking per capita." See Rotmanskey v. Heiss, 86 Md. 633, 39 Atl. 415. The goods and wares of a merchant or trades man, kept for sale and traffic. In a larger sense. The capital of a mer chant or other person, including his mer chandise, money, and credits, or, in other words, the entire property employed in busi ness. In corporation law. The capital or prin cipal fund of a corporation ; or joint-stock company, formed by the contributions of sub scribers or the sale of shares, and considered as the aggregate of a certain number of shares severally owned by the members or stockholders of the corporation; also the proportional part of the capital which is owned by an individual stockholder; also the incorporeal property which is represent ed by the holding of a certificate of stock; and in a wider and more remote sense, the right of a shareholder to participate in the general management of the company and to share proportionallj in Its net profits or earnings or in the distribution of assets on dissolution. See Thayer y. Wathen, 17 Tex. STIPULATOR. STOCK. In mercantile law.