Okay so the stock market is finally leveling out a little. Although small dips occur, the housing industry and other industries are starting to recover. As we examine the ongoings of wall street we question why did this happen? Government bailouts should not be needed to sustain a practical business model. As usually we look to the leaders of the companies to see what went wrong, but not everything is in the control of the CEO. As we look to invest in the future we should be prepared to look at companies from every angle. Just because stock holders are not legally responsible for actions of a corporations, doesn't mean that they do not have rights. And doesn't every American need to exercise their rights?
In many cases a customer si seen as the first priority. After that a company owes its loyalty to the employees and investors. As a stockhold you own part of the company, so therotically the company should do things that wil benifite you. Yet often "common shareholders are (treated as) the corporate equivalent of a vulture that eats only after the lions and hyenas have had their share."
The following is a list of the six main common share stockholder rights.
- Voting power-this includes for positions on the board of directors and the ability to vote via proxy.
- Right to increased share values: while you are not guaranteed that you will make a profit you are entitled to be paid, after bondholders and preferred shareholders.
- Right to transfer ownership: you can participate in the stock exchange, see also right to lose your shorts.
- Dividend Entitlement: when dividends are declared you are entitle to receive your share.
- Right to inspect corporate books and records, this is an antiquated right but it is still important you need to study your investment so you will no when to bail before the company needs a bailout.
- Suing for Wrongful Acts: that's right the most American of all your rights to form a class-action suit and have your day in court.
