The right to get liquidated company’s assets

When a company is dissolved or liquidated due to some reasons, every investor is eligible to get their share of the company’s assets in proportion to their share of the profits based on the number of shares they hold.

If the investor’s share of the company’s profit is 40%, then they will also be eligible to get 40% of the distributed assets of the company.

Voting Rights

A share of stock provides the share holder the right to vote on specific corporate issues.

These votes are organized like voting proceeds in a Parliament or in a committee.

In many cases, one share of stock contributes to one vote.

1 share = 1 vote.

Remember, one share = one vote; the value of one share will determine the number of votes.

Every share valued at $5 will give one vote and not 5 votes.

The basic share of $5 stock is less powerful than a share of a regular $1 stock. 

• 5 shares of $1 value can make 5 votes
• One share of $5 value can make only 1 vote

Due to this reason the $5 stock is known as the “inferior stock”.