SHARES OF COMMON STOCK 250 Total Number of Shares 200 150 100 50 Shares You Have Purchased 0 Corporation A Because you have purchased of the total number of shares in corporation A, you are entitled to that portion of the corporation's assets and income but only after all other higher-priority claims (for example, bond payments) have been satisfied. This proportional entitlement to the corporation's assets and income is called a claim. liability, which means that your responsibility for business If you own shares of common stock in a corporation, then you have a losses is limited to Each holder of common stock has proportionate authority to express an opinion or choice in matters affecting the company. This authority is known as Stockholders also vote to elect the company's board of which is a group of individuals that sets policy and names the principal officers of the company (management) who run the day-to-day operations of the corporation