Stockholders also have the right to be informed of the company's financial and business status. They normally have the right to transfer shares of stock freely. Liability for corporation debts is normally limited to the capital a stockholder has invested in the corporation. When attempting to contact the corporation you should always ask to speak to a corporation officer. Corporations often issue bonds as well as stock as a means of raising capital.
Stocks represent ownership in the company, but a bond is a contractual obligation .
It represents a promise of the corporation to pay a fixed sum of money to the bondholder at the date of maturity and to pay a stipulated amount of interest at periodic intervals. The bondholder is not usually a part of the corporate organization with respect to voting privileges and ownership. 3010.09 Pre-incorporation Activities February 1998 1. Pre-incorporation activities are not considered doing business. Securing insurance policies 2.