Ownership: They are the owners of the corporation. Common shareholders are entitled to vote at shareholders’ meetings on company-related issues such as electing the board of directors and choosing an auditor. Most shareholders are not involved in managing the affairs of the corporation.
Liability: Shareholders’ liability for debts of the corporation is limited to the price they paid for the shares they own.
Profits: Shareholders receive a portion of profits based on the type and number of shares they own in the corporation.
Entitlement: They are entitled to share the assets if the corporation dissolves, after all debt obligations have been satisfied.