Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyse...

Shareholders of corporate stock may have claims to a company’s assets and income.” Discuss and analyse this quote.

Expert Solution

Individuals that own shares of company stock are viewed as the true owners of that company. As such, a shareholder has specific privileges and rights that are governed by the laws that prevail in the state where the company is headquartered. The most important rights that all common shareholders possess include:

1. The right to share in the company's profitability, income, and assets

2. A degree of control and influence over company management selection

3. Presumptive rights to newly issued shares.

4. General meeting voting rights.

Shareholders have the right to participate in a company's profitability for as long as they own the shares. In addition to a share in profits generated by the company, shareholders also have rights to income distributions through dividend payments. If a company's board of directors declares a dividend in a certain period, shareholders are in line to receive it.Dividends are not guaranteed, however. If the company is liquidated, shareholders have the right to assets and income of the company after bondholders and preferred shareholders are paid

ekkarill92 answered 2 years ago

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