A shareholder or stockholder is an individual or institution (including a corporation) that legally owns a share of stock in a public or private corporation. Shareholders are the owners of a limited company. They buy shares which represent part ownership of a company. Stockholders are granted special privileges depending on the class of stock. These rights may include: The right to sell their shares. The right to vote on the directors nominated by the board. The right to nominate directors (although this is very difficult in practice because of minority protections) and propose shareholder resolutions. The right to dividends if they are declared. The right to purchase new shares issued by the company. The right to what assets remain after a liquidation.
Posted on: Mon, 17 Mar 2014 17:59:57 +0000
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