What is identify which of the following is not generally a right of common stockholders.?
Common stockholders, as owners of a company, possess several fundamental rights. Understanding these rights is crucial for investors. Generally, the rights of common stockholders include:
- Voting Rights: This is a core right, allowing stockholders to participate in major corporate decisions, such as electing the board of directors and approving significant corporate actions like <a href="https://www.wikiwhat.page/kavramlar/mergers%20and%20acquisitions">mergers and acquisitions</a>. Typically, each share owned equates to one vote.
- Right to Dividends: While not guaranteed, common stockholders have the right to receive a share of the company's profits in the form of dividends, if and when declared by the board of directors. Note that <a href="https://www.wikiwhat.page/kavramlar/preferred%20stock">preferred stock</a> holders usually have priority in dividend payments.
- Right to Inspect Corporate Books and Records: Stockholders generally have the right to access certain company information, including financial records, to ensure proper management. This right is usually subject to reasonable restrictions and requirements.
- Right to Transfer Ownership: Stockholders can freely sell or transfer their shares to others, allowing them to exit their investment at any time (subject to market conditions).
- Right to Sue: Stockholders can bring lawsuits against the company's management or board of directors if they believe that the company has been mismanaged or that their rights have been violated.
- Right to a Share of Assets Upon Liquidation: If the company is liquidated, common stockholders have a right to receive a proportionate share of the remaining assets after all debts and other obligations (including those to <a href="https://www.wikiwhat.page/kavramlar/bondholders">bondholders</a> and preferred stockholders) have been paid. This is often the least valuable right, as there may be little or nothing left for common stockholders after all other claims are satisfied.
A right that is not generally held by common stockholders is the guaranteed payment of dividends. The decision to declare and pay dividends is at the discretion of the company's board of directors, and is dependent on the company's financial performance and other strategic considerations.