In a Corporation, how is ownership typically represented?

In a corporation, ownership is typically represented through shares of stock. This means that individuals or entities that purchase shares become part owners of the corporation, holding a stake in its assets and profits proportional to the number of shares they own. Each share represents a claim on the corporation's earnings and assets. This system allows for the efficient transfer of ownership and facilitates capital raising, as shares can be bought and sold on stock exchanges.

In contrast, member agreements are more commonly associated with limited liability companies (LLCs), which do not use shares of stock to represent ownership. Contractual arrangements may govern various business relationships but do not establish ownership in a corporate structure. Partnerships involve two or more individuals sharing ownership and management responsibilities, rather than a structured system of shares, and do not provide the same legal protections or characteristics inherent to corporate ownership. Thus, shares of stock are the standard and legally recognized means of representing ownership in a corporation.