preemptive rights
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cumulative voting rights
Allow a stockholder to allocate their votes in any manner. They benefit the small investor/shareholder because they can put all their votes on single candidate.
Preemptive Rights
Stockholders have a preemptive right to buy enough newly issued shares to maintain their proportionate ownership in the corporation. Preemptive rights give investors the right to maintain a proportionate interest in a company's stock.
benefits of stock ownership
growth and income
risk of stock ownership
investors have no guarantee that they will get the returns they expect from their investments. There's also market and business risks.