They are entitled to certain rights :

1. They can hold high managerial positions themselves or
2. Vote for [[Board of directors]], (depends on the class of stock)
3. Receive dividends when declared by the Board of directors
4. To receive the annual financial statements , once they are issued

Intent of shareholders

1. Gain profit for their money from :
   1. Dividends
   2. Appreciation in the market price of the shares
2. To gain control over business

What happens when a business is liquidated or sold ?

1. All creditors of the business are first paid
2. If any funds or assets remain , the shareholders will receive them as per the split

Shareholders have the greatest risk and are also handsomely rewarded if the business picks up