๐Ÿ“š node [[shareholders]]

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

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๐Ÿ“– stoas (collaborative spaces) for [[shareholders]]