Name:

Khurram Shehzad

Registration#

CIIT/FA15-EMBA-138/CVC
Assignment # 3

1.

What are the Rights of Stockholders?

Right to Dividends

The main aim of any company is to earn the profit. When the
company earns the profit it will be divided into stockholder. The
company first fulfill its liabilities than after make decision to retain
the profit or distributed among the stockholders.

Voting Rights

The stockholders have also voting rights in the company. They gives
votes, their voting powers are according to their number of shares
which they holds. For example a stock holder who holds 500 share
have more votes than a stockholder who have 200. Through their
votes they can reject or select the proposals and plans which are
proposed by board of directors.

Right to Financial Information

It the right of stockholder that they can get financial information

about the company any time. The company prepare quarterly or
annually financial reports the stockholder can get these reports any
time. According to the reports the stockholder selects about its
future investment.

Right to Transfer Ownership

The stockholder has also right to sell his ownership. When the
stockholder purchases the shares of the company the company
against his investment issues a certificate of stock. The stockholder
can sell this certificate to anyone who desire to purchase. The
person who buys the stocks becomes the company's new
stockholder.

Right to Sue

Its the right of stockholder that he can sue on the company if the
company is breaching any law. For example, if the company is
breaking the law or involve in illegal activities the stockholder have
a right to sue on the company.

2.
(a) Paid-in capital, also referred to as contributed capital,
is the amount that the corporation received from stockholders when
the corporation issued its stock. Paid-in capital is also referred to as
permanent capital.

(b) Retained earnings is the aggregate income after tax.

The net income earned by the corporation since its inception minus
the dividends that have been distributed to the stockholders since
the corporation began.