What rights does one have as an ordinary shareholder?
Holding equity also gives you the right to vote for the company’s board of directors. The number of votes depends on the number of stocks you hold. On a special gathering every year called the annual general meeting (AGM) you also get to vote for or against the company’s annual report placed before all shareholders. However, preference shareholders don’t get to vote in the AGM. As an equity shareholder you also have what are called pre-emptive rights. That means that in case a company decides to offer new equity shares existing equity shareholders are offered first before the company can go to the open market with a public offering.
