# 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