Question

Trey owns 250 shares of common stock in a toy-store company, which means he owns a percentage of the company. With this ownership, he also acquires the right to ___________

Answer 1

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Step-by-step explanation:

Common stock ownership grants its holders the right to the following.

• right to receive a dividend when declared by the company. A dividend is a part of the profit for a given year that the management of a company has deemed fit for payment to the shareholders of the company
• right to attend and vote in a meeting of the stockholders/shareholders
• right of first refusal when the company wishes to raise additional capital. This means shareholders must be offered the option of providing the additional capital needed by the company first, before the option to raise outside capital can be taken.