The Different Types of Shareholders in a Business
The various types of shareholders in a company are the individuals or institutions who have shares of the company’s stock. Shareholders have various legal entitlements that permit them to participate in voting on corporate issues as well as receive dividends and an interest in the company’s assets when liquidating. The different types of companies around the world provide a wide range of products and services, which vary in size and industry. For example, Amazon sells a variety of products from books to kitchen appliances, whereas Apple is renowned for its unique electronic devices like personal computers, smartphones, earphones and watches.
There are two types of shareholders in general both preferred and common. Common stock holders enjoy a partial ownership of the company and have the right to vote and a percentage of profits (if there is any). This kind of share typically will yield higher returns in the long run, however it does not guarantee an annual dividend. Common shareholders also have the right to examine the company’s records, such as meeting minutes and shareholder registers.
Preferred shareholders receive a yearly dividend and also have a priority over common stockholders if liquidating the company’s assets. However, they are not allowed to vote on board members and other policies of the company. The term “shareholders” is synonymous with “stakeholders,” but stakeholders are a broad term that includes employees and customers, as well as local communities and suppliers. Shareholders directly invest in the success http://companylisting.info/ of a business.
