Video: Stockholders Rights

In this lesson, Nick Palazzolo, CPA, dives into the rationale behind purchasing equity in a company, emphasizing the desire to partake in the profits and losses in a proportionate manner. He relates this concept to the experience of owning and operating a small business, which makes the idea more accessible and easier to grasp. He explains the rights associated with being a shareholder, like a stake in corporate assets in the event of liquidation and influence over corporate management and the board of directors. Nick clarifies that while individual small shareholders may not sway major decisions, collectively or with a significant number of shares, they do hold the power to impact the direction of a company.