Stocks grant the holders:
• Limited liability in case of bankruptcy (limited with the amount of investment).
• Claim on income in the form of dividends.
• Claim on assets if the business goes bankrupt.
• Voting rights in the election of the Board of Directors.
• Preemptive rights.
Preemptive rights gives the preferred stockholders the right to purchase new shares of stock proportionate with their existing share of ownership.