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As far as I know, everything you said is factually incorrect in the majority of cases.

Common stock is a security that represents ownership in a corporation. In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid.

Do you have a source for these bold claims?



These aren't bold claims, it's literally how stocks work.

The belief of shareholders actually owning the company was just a side-effect of the marketing for shareholder primacy ideology. Even recent finance/management textbooks specifically call this out.

Some sources:

https://hbr.org/2012/07/what-good-are-shareholders

https://www.ft.com/content/7bd1b20a-879b-11e5-90de-f44762bf9...


It seems to me that both descriptions are practically accurate. A compromise position is: lawsuits allow shareholders to receive company funds even in a situation where the majority of the (voting) shareholders would not otherwise authorize it. For some companies with dual-class voting structures, this might even be the only way that a common shareholder would ever see a payout.




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