Advantages of Stock Holdersand the company- security and capital market notes
Stocks are advantageous to the stockholders and the company
The main advantages of stocks to the stockholders are'
1. A stock holders can enjoy all the rights andprivileges enjoyed by a shareholder
2. Besides enjoying the rights and privileges of ashareholder, a stock holder has an additional advantage. That is, he can splitup or divide and transfer his stock in fractions of any amount, even in oddamount.
3. Stock denotes that the company has recognizedthe fact that the holder of stock has paid the complete or full payment duefrom him to the company this recognition will help the stockholder to transferhis stock easily,
The main advantage of the stock to the company is that, as the stocksare not numbered, the company need not keep a detailed record of stockstransferred.