BUS_FP3062Assessment5.docx Assessment 5: Stocks Valuation Capella University BUS-FP30

BUS_FP3062Assessment5.docx    Assessment 5: Stocks Valuation  Capella University  BUS-FP3062  Stocks Valuation  1. Individuals owning common shares are viewed as the legal owners of a company.  As a result, common shareholders have specific rights and privileges governed by the state's law where the company headquarters are stationed. There are four common rights of shareholders; right to vote during the general elections, right to get a portion of profitability, right to participate in corporate management and policy, and right of purchasing new shares.   Voting right in general elections is the most significant right amongst shareholders, and it is the. Ity to cast a vote based on the shareholder's annual general elections (Mallin&Melis, 2010). In most companies, vote power is based on the number of shares that the voter owns. The more the shares, the more the influence.   Shareholders who are the partial owners of a company can share their profitability based on the share numbers.  Besides, shareholders also have a right to receive dividend payments though it is not always guaranteed. However, if the company is liquefied, shareholders have a right to income and assets after payment of preferred shareholders, and bondholders are paid.  Shareholders influencemanagement by exercising their voting right when electingboards of the company. The most significant shareholder is the presidentIn some companies, while in the larger companies, there is a more considerable diversity in the common pool of investme