What rights and privileges do shareholders have?

Modified on Mon, 18 Jun 2018 at 11:49 AM

Say you just bought stock in Disney. As a part owner of the company does this mean you and the family can hit Disneyland for free this summer? Do Anheuser-Busch shareholders get a case of beer each quarter? These hypothetical perks are highly unlikely, but they do raise a good question: What rights and privileges do shareholders have? While they may not be entitled to free rides and beer, many investors are unaware of their rights as shareowners. Here are several privileges that come with being a shareholder.

Levels of Ownership Rights

The first thing to understand: Every company has a hierarchical structure of rights for the three main classes of securities that companies issue: bonds, preferred stock and common stock. In other words, there’s a pecking order of rights.

Source ; Investopedia

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