All shareholders are entitled to fundamental legal rights which can benefit them at a later time when problems arise in a particular trade. However, there are only a few who are aware of what their rights are.
The Philippine Stock Exchange (PSE) promotes shareholder activism by encouraging stockholders to be familiar with the rights stipulated in the Securities and Exchange Commission (SEC). These fundamental legal rights include:
1. Right to Equal and Fair Treatment
All investors, regardless of status, are given equal rights to access information and opportunities within the PSE.
2. Right to Information
Any event that can cause a stock price to move up or down must immediately be disclosed by the company to the PSE and the PSE to the investors.
3. Voting Right
All investors are also given rights to engage in events that determine who will govern and manage the stock exchange organization.
4. Right to Full Fund Access
All investors should be given full access to funds which the shareholder has gained through his stocks.
5. Right to Know if the Management, Board, Agents, and Brokers Act Responsibly
The investor should not have a reason to doubt the performance of the management, board, agent, and brokers. All the stock market staffs are expected to comply with the company’s culture of honesty, integrity, and compliance with the law.
6. Right to Depend on the Accuracy and Completeness of Accounting and Financial Reports
Investors are given the right to be assured that all information provided to them regarding their statements of account is accurate and up-to-date.
7. Right to be Aware of Disputes Regarding the Account
All investors must know if ever an issue arises regarding their account. They are also given priority in consulting with the board, directors, agents, and other personnel in the stock exchange to resolve their dispute.
8. Right to a Fair Securities Market
Investors can trust that stock pricing reflects the exact value that the shares are supposed to be priced.
9. Right to Know Full Performance of the Regulating Bodies
Every trader can rest assured that the supervising body of the PSE is complying and performing their duties to the best interest of the investing public.
10. Right to Dividend
As a shareholder, the investor becomes a part owner of the company. With that, he or she now has the right to enjoy the benefits and the profit the company has earned over a period.
Although stock investing is a profitable endeavor, you need to be aware of your fundamental legal rights to protect yourself from possible losses and fraud.
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