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Who are the owners of a corporation and how do they receive returns?

Who are the owners of a corporation and how do they receive returns?

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Expert Solution

Owners of a corporation are equity shareholders and these equity holders will be receiving the returns in terms of the dividend payments by the company and they will also receive the returns in terms of the capital appreciation on the investment and there will be sometimes share buybacks by the company at prices higher than the current market price so premium valuation in the buyback prices are other type of gain for the shareholders.

Equity shareholders are always known as owners of the corporation and dividend payments are not mandatory to them and they will be likely earning through capital appreciation and share buyback.

jeff jeffy answered 2 years ago
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