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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