What are the rights generally granted to common stockholders?
Chiappetta, Larson, Wild, Fundamental Accounting Principles, 18th Ed., McGraw-Hill 2007, Original work published 1976).© BrainMass Inc. brainmass.com June 3, 2020, 11:40 pm ad1c9bdddf
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 ...
This solution of 392 words lists and explains six types of rights available to common shareholders of a corporation.