Mallor pg 1108 entitlement to dividends board of

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each new director to be elected. (Mallor, pg. 1108) Entitlement to dividends- Board of Directors will above the percentage of dividends paid out or they can be reinvested back into the company, possibly increasing the company’s overall value. One important objective of a business corporation is to make a profit. Shareholders invest in a corporation primarily to share in the expected profit either through appreciation of the value of their shares or through dividends. (Mallor, pg. 1122) This article is straight to the point in the definition about shareholders. Even though the common shareholder may be at the bottom of the barrel when it comes to liquidation, it is balanced out with the possibilities of price appreciations. For those who understand the rights and responsibilities for shareholders will not put themselves at great risk for investing into a corporation. Investing 101.2013. Knowing Your Rights As A Shareholder. Retrieved from Mallor, J. P., James, B., Bowers, T., & Langvardt, A. W. (2013). Business Law: The Ethical, Global, and E-Commerce Environment (15th ed.). New York, New York: McGraw-Hill/Irwin
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