Question
For every person who decides to invest in corporations through purchase of stocks, it is important that they know the rights they have when owning
For every person who decides to invest in corporations through purchase of stocks, it is important that they know the rights they have when owning stocks. Typical shareholder rights are provided below:
1. Shareholder's are able to vote in election of board of directors at annual meetings. Shareholder's are also able to vote on any actions that requires the approval of a equity ownership. 2. Share corporate earnings through receipt of dividends. 3. Retention of the same percentage ownership when new shares are issued. 4. Residual claims: assets shared upon liquidation in proportions to their holdings. Shareholders are compensated, to a degree, with after all the other claims (liabilities) have been paid cleared.
Are there any other rights or privileges that a shareholder has? What is the most important in your opinion - please explain.
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