The capital stock of a concern may be increased or diminished by a vote of the majority of the stockholders representing a majority of the stock.

Preferred Stock. The preferred stock of a corporation is given to secure some obligation of the company and upon it dividends are declared in preference to common stock. That is to say, if a man holds a share of preferred stock he will receive interest thereon out of the profits of the business before such profits are given in the form of dividends to shareholders generally.