Dividend Right: A stock entitles its owner to get a share of the yearly net profit of a company. Dividends are paid to stockholders when the company decides to allocate dividends at its general assembly. A dividend is one of the most important financial benefits of the stockholder, representing an acquired right, but may be limited with certain terms.
Pre-emptive Right: It entitles a priority to the stockholder to participate in the capital increase of the company through a rights issue. The subscription period to exercise the pre-emptive right is minimum 15 days and maximum 60 days. Rights coupons can be traded on the Rights Coupons Market.
Right to Share in Liquidation Balance: If there remains any balance after the company’s liquidation, the stockholder participates in such balance in proportion to its shareholding interest.
Right to Participate in Management of a Company: The stockholder is entitled to attend the general assembly, elect the board of directors, and be elected a member of that board.
Voting Right: Each stock vests minimum one voting right in its holder. Notwithstanding, the number of voting rights which a stock will vest in its holder may be determined by the articles of association, and the voting rights attached to a single share may be increased.
Companies may also grant dividend benefits, issuing stocks without a voting right.
Right to Receive Information: It is essential that an investor in a stock market has access to the information relating to the company. The stockholder’s right to receive information cannot be prevented or limited with the articles of association or a decision of the company. Publicly-held companies are obligated to disclose any important information/news related to the company’s condition in the most practicably way. Companies also disclose their independently-audited financial statements on a quarterly basis.