Final answer:
Stockholders have four basic rights: the right to vote, the right to dividends, the right to inspect corporate books and records, and the right to sue for corporate mismanagement.
Step-by-step explanation:
When a company is owned by a large number of shareholders, there are four basic rights that all stockholders have, unless specifically withheld by an agreement:
Right to Vote: Stockholders have the right to vote in the election of the board of directors. The number of votes each stockholder has is usually proportional to the number of shares they own.
Right to Dividends: Stockholders have the right to receive a share of the company's profits in the form of dividends. The amount of dividends each stockholder receives is usually proportional to the number of shares they own.
Right to Inspect Corporate Books and Records: Stockholders have the right to inspect the company's books and records, including financial statements and minutes of meetings.
Right to Sue for Corporate Mismanagement: Stockholders have the right to sue the company and its management if they believe there has been mismanagement or breaches of fiduciary duties.