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.
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