answersLogoWhite

0

DefinitionCompany stock represents a claim of ownership on the assets and earnings of the company. For this reason company stock is also known as "shares" or "equity." Company stock has three main features: ownership rights, voting rights and limited liability. The percentage of ownership that an investor has in a company is proportional to the shares owned by the investor. Each share of common stock grants the investor the right to one vote that can be used to elect the board of directors of the company. Therefore, investors who have higher percentage of ownership have a greater say in the corporate decisions. All stockholders enjoy limited liability. This means that if the company goes bankrupt, their loss is limited to their investment.
User Avatar

Wiki User

13y ago

What else can I help you with?

Continue Learning about Management
Trending Questions
How can I use Jira to add story points to a task or user story in my project? What is the difference between a project scope statement and a project charter? The effect of planning on managers is that it forces them to? What are the key responsibilities and objectives that a project manager sets as their annual goals? How can you measure the effectiveness of human resource strategy? What are the consequences be of failing to involve a wide range of people in resource planning? What is meant by the divorce between ownership and control that can occur in public limited companies? What method is used to implement controls in risk management process? At what company do Michael Jim and Dwight work for on The Office? Sample leave extension letter? Teresa Vakili is a remarkable manager she has the ability to garner the respect of peers and VP's alike? What does the term 'compliance risk' mean? What is the important of human resource management to the managers? What are the benefits of using earned value management in project management? What are the knowledge management best practices that organizations should implement to enhance their overall efficiency and productivity? Management has characteristics of a fully fledged profession? How planning organizing leading and controlling related to one another? What kind of management is a long term capital management? Some of the key problems with information systems that show up later in the systems development life cycle can be traced back to inadequate work during requirements determination how might this issue? What are the advantages and disadvantages of semi intensive management system of livestock management?