Most businesses start out as a small company, owned by digit mortal or by a partnership. The most common type of business when there are multiple owners is a corporation. The law sees a house as real, live person. Like an adult, a house is treated as a distinct and independent individual who has rights and responsibilities. A corporation's \"birth certificate\" is the legal form that is filed with the Secretary of State of the state in which the house is created, or incorporated. It must hit a legal name, just like a person.

A house is removed from its owners. It's responsible for its own debts. The bank can't come after the stockholders if a house goes bankrupt.

A house issues ownership deal to persons who invest money in the business. These ownership shares are documented by stock certificates, which state the name of the owner and how many shares are owned. the house has to keep a register, or list, of how many shares everyone owns. Owners of a house are called stockholders because they own shares of stock issued by the corporation. One deal of stock is digit unit of ownership; how much digit deal is worth depends on the total number of shares that the business issues. the more shares a business issues, the smaller the percentage of total owners' equity each deal represents.

Stock shares come in different classes of stock. Preferred stockholders are promised a destined amount of cash dividends each year. Common stockholders hit the most risk. If a house ends up in financial trouble, it's required to pay off its liabilities first. If any money is left over, then that money goes first to the preferred stockholders. If anything is left over after that, then that money is distributed to the common stockholders.