Answer
The Basic Ownership rights to common stock holders are as under:
Work Step by Step
- Vote in election of board of directors, and to the resolutions where the approval of stock holder is required. · Share the corporate earnings through dividends.
- To keep the same percentage of rights, when the new shares are issued.
- Share the assets of the corporation in case of liquidation. This is a residual claim as the common stock holders will get a share, after payment to Creditors and Preference share holders.
