Understanding Shareholder Rights in Socially Responsible Investing

If you choose to get involved in socially responsible investments, there are a number of different options for you. If you choose to purchase stock, you are going to have certain shareholder rights. Here are the basics of your shareholder rights with socially responsible investments.

Voting Rights

When you are a shareholder, you are going to have voting rights. This means that you will be able to vote on important matters involving the company. For example, if the company is electing a new board of directors, you will be able to have a say in who gets elected. You are going to get one vote for every share of stock that you own in the company.

Partial Ownership

In addition to being able to vote, you are going to have a partial ownership in the company. This means that you have a claim on all of the assets that belong to the company.

Dividends

As a shareholder, you are also going to be able to receive dividends. When the company makes a profit, it will periodically distribute these dividends to shareholders as a way to share the wealth. Dividends are not required to be paid, but most companies will pay them quarterly.