What are the rights generally granted to common stockholders
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What are the rights generally granted to common stockholders?
Chiappetta, Larson, Wild, Fundamental Accounting Principles, 18th Ed., McGraw-Hill 2007, Original work published 1976).
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Solution Summary
This solution of 392 words lists and explains six types of rights available to common shareholders of a corporation.
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Common shareholders generally have six main rights as part owners of a company. These rights are not only available to publicly traded investors, but also to private company ownership.
1. Shareholders are owners. A shareholder actually owns an interest in the assets of a company. As an owner, a shareholder has a claim to a percentage of the assets owned, based on the number of shares or percentage of ownership. In the event of liquidation, there is a legal ordering of how claims against assets are paid out. Common shareholders are at the bottom of the list, but that is not to say that ...
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