A proxy is a legal form that lists the issues to be decided at a stockholder's meeting and requests that stockholders transfer their voting rights to some individual or individuals. A preemptive right is the right of current stockholders to purchase any new stock the corporation issues before it is offered to the general public. Dividends A corporation's board members usually declare dividends if the corporations's after-tax profits are sufficient for them to do so. Corporate dividends for common stock can be paid in cash, additional stock, or company products. If the corporation declares a cash dividend, each stockholder receives an equal amount per share.
Most corporations pay dividends on a quarterly basis.
The date of record is the date on which a stockholder must be registered on the corporation's books to be able to receive dividends . On the fourth day before the date of record, the stock begins selling ex-dividend . Anyone who purchases an ex-dividend stock is not entitled to receive dividends for that quarter. In most cases, a stockholder purchases a stock and then holds onto that stock for a period of time. If the market value of the stock increases, the stockholder must decide whether to sell the stock at the higher price or continue to hold it.