“SHAREHOLDER

S” OR
“STOCKHOLDER
S”
WHAT IS SHAREHOLDERS OR
STOCKHOLDERS?
• Shareholders essentially own the company,
which comes with certain rights and
responsibilities. This type of ownership allows
them to reap the benefits of a business’s
success.
These rewards come in the form of increased stock
valuations or financial profits distributed as
dividends. Conversely, when a company loses
money, the share price invariably drops, which can
cause shareholders to lose money or suffer declines
in their portfolios.
UNDERSTANDING SHAREHOLDERS

• Being a shareholder (or a stockholder, as

they’re also often called) comes with certain
rights and responsibilities. Along with sharing
in the overall financial success, a shareholder
is also allowed to vote on certain issues that
affect the company or fund in which they hold
shares.
 SHAREHOLDER RIGHTS

According to a corporation’s charter and bylaws,

shareholders traditionally enjoy the following rights:

• The right to inspect the company’s books and records.

• The power to sue the corporation for the misdeeds of its
directors and/or officers
• The entitlement to receive dividends.
• The right to attend annual meetings, either in
person or via conference calls
• The right to vote on critical matters by proxy, either
through mail-in ballots or online voting platforms if
they’re unable to attend voting meetings in person.
• The right to claim a proportionate allocation of
proceeds if a company liquidates its assets.
• The right to vote on key corporate matters, such as
naming board directors and deciding whether or
not to green-light potential mergers.
IS SHAREHOLD OR STOCKHOLD A
GAMBLING?