Rights of a Stockholder

Whenever you buy a stock, there are certain rights that the owner of the stock is granted upon the ownership of the stock. You should keep in mind that some companies offer various classes of stocks and the company may offer various rights apart from the standard rights of a stockholder.
Stock Splits = ‘Stock Splits’ is an increase in the number of outstanding shares of a corporation without changing the shareholders’ equity. So, when the stocks are split by a company, the shareholder automatically gets the split number of shares as per his original number of shares.
Pre-emptive Rights = Pre-emptive Rights’ is the right granting to shareholders the first opportunity to buy a new issue of stock. This right provides protection against dilution of the shareholder’s ownership interest.
Claim on Income = Claim on Income’ is the financial gain earned over a given period of time from the profit made by the company. The shareholder is entitled to a claim on this income in the form of dividends.
Limited Liability = Limited Liability’ is a statutory right of corporate shareholders that limits their potential losses to the value of the shares they hold.
Voting Rights = ‘Voting Rights’ means the shareholder’s right to vote on major policy issues. Generally, each share of common stock has one vote. However, some companies have different classes of shares and some classes offer extra voting rights to their shareholders.