The-definition.com

Definition

Right of stockholders

 Stockholders have the right to

  1. Vote in election of board of directors at annual meeting and vote on actions that require stockholder approval.
  2. Share the corporate earnings through receipt of dividends.
  3. Keep the same percentage ownership when new shares of stock are issued.
  4. 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.
Share it:  Cite

More from this Section

  • Flexible budget
    Flexible budget is a projection of budget data for various levels of activity. In essence, ...
  • Cost principles
    The cost principles, also known as the historical cost principle is one of the basic underlying ...
  • Public accounting
    Public accounting is an area of accounting in which the accountant offers expert service ...
  • Equity method
    Equity method is an accounting method in which the investment is common stock is initially ...
  • Overhead controllable variance
    Overhead controllable variance is the difference between normal capacity hours and standard ...