Stockholders have the right to
- Vote in election of board of directors at annual meeting and vote on actions that require stockholder approval.
- Share the corporate earnings through receipt of dividends.
- Keep the same percentage ownership when new shares of stock are issued.
- Share in assets upon liquidation in proportion to their holdings. This is called a residual claim: owners are paid with assets that remain after all creditors’ claims have been paid.
Category: Accounting & Auditing
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