The different kinds of shareholders in a business are the individuals or institutions who have shares of the company’s stock. Shareholders are entitled to various legal rights such as the right to vote on corporate matters, receive dividends, and get assets in the event of a liquidation. Businesses of all sizes and industries offer a variety of goods and services. For instance, Amazon sells a variety of products from books to kitchen appliances, whereas Apple is known for its unique electronic devices such as personal computers, smartphones, earphones and watches.
In general, there are two kinds of shareholders: preferred and common. Anyone who owns common stock has only a small share of the company, which means they are entitled to vote rights and part of the company’s profits (if there is a profit). This type of share typically offers higher returns over the long run, however it does not be able to guarantee a regular dividend. Common stockholders also have the ability to look up the company’s records, such as meeting minutes and shareholder registers.
Preferred shareholders receive an annual guaranteed dividend and have precedence over other stockholders the case of liquidating assets. They are unable to vote for board members or other policies of the company. The term “shareholders” is synonymous with “stakeholders,” but stakeholders http://companylisting.info are a broad term that includes customers and employees as well as suppliers and local communities. Shareholders directly invest in the financial success of a company.
