Question:
Match the items below to show the risks, benefits, and powers of stockholders.
A. Risk of being a stockholder
B. The benefit of being a stockholder C. Power of a stockholder
1. Stockholders aren't guaranteed a return on their investment.
2. Stockholders receive dividends when the company makes a profit
3. Stockholders can sell their shares in the company at any time
Answer:
A. Risk of being a stockholder : 1. Stockholders aren't guaranteed a return on their investment.
B. The benefit of being a stockholder: 2. Stockholders receive dividends when the company makes a profit
C. Power of a stockholder: 3. Stockholders can sell their shares in the company at any time
Explanation:
A stockholder is a person that can also be referred to as a shareholder in a company or a firm that is private or public.
Stockholder or shareholder is a person that owns by legal rights the stocks present in a company's shares.
Stockholders benefit from the companies that they have shares in when ever the dividends from the company's profit are made public by the company. They also have the right to vote about who sits on a company's board. Stockholders can sell their shares in a company anytime they want.
One of the risks associated with been a stockholder is that a return on your investment by the company you own shares in cannot be guaranteed.
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