Q:

What does a shareholder do in a company?

A:

Quick Answer

According to Investopedia, a shareholder is any person owning at least one share in a corporation. A shareholder has rights outlined in the corporate bylaws. The shareholder can review the company's financial books and sue for actions that negatively impact the corporation.

Continue Reading
What does a shareholder do in a company?
Credit: reynermedia CC-BY-2.0

Full Answer

Shareholders do not play a significant role in the daily operations of the company. They are not personally liable for the company’s debts or obligations. Investopedia explains that if a corporation fails and sells assets to obtain cash, the shareholder is entitled to proceeds, accordingly.

A shareholder is allowed to attend annual meetings. This level of ownership also affords the right to vote for board members and other corporate matters.

Learn more about Investing
Sources:

Related Questions

  • Q:

    What is ordinary share capital?

    A:

    Ordinary share capital refers to shares that are issued by a company that allow shareholders voting rights within a corporation. Ordinary shareholders may also receive dividends. Ordinary shares are also referred to as common stocks.

    Full Answer >
    Filed Under:
  • Q:

    How do you start trading penny stocks?

    A:

    A person can start trading penny stocks by selling fast, not shorting and finding stocks that are over 50 cents a share, according to MarketWatch. Beginners can find penny stock listings on NASDAQ or the New York Stock Exchange to get started, claims For Dummies.

    Full Answer >
    Filed Under:
  • Q:

    What is Earnings Whispers?

    A:

    Earnings Whispers is a company that gathers unofficial expected earnings per share information for stock trading. Earnings Whispers is based on professional investor analysts' research of predictive stock value increases, notes the company website.

    Full Answer >
    Filed Under:
  • Q:

    What is EBIT/EPS analysis?

    A:

    EBIT/EPS analysis is a tool for showing how a company?s earnings before interest and taxes affect its earnings per share, and it is used to guide investment decisions. EBIT/EPS analysis is useful for showing the effect of a capital structure on a company?s risk levels and earnings.

    Full Answer >
    Filed Under:

Explore