12 Aug The Different Types of Shareholders in a Business

Individuals or institutions who hold shares in a company are the various kinds of shareholders. Shareholders have different legal rights which allow them to vote on corporate matters they can also receive dividends and an interest in the company’s assets when liquidating. The different types of companies around the world offer various products and services that vary in size and industry. For example, Amazon sells a variety of products from books to kitchen appliances, and Apple is known for its innovative electronic gadgets including smartphones, personal computers, earphones and watches.

Generally, there are two kinds of shareholders: common and preferred. Common stock holders hold a portion of ownership in the company and have the right to vote as well as a share of profits (if they have any). This kind of share typically provides higher returns over the long run, however it does not guarantee a dividend every year. Common stockholders have the right to look over company records, such as the minutes of meetings and shareholder lists.

Preferred shareholders receive a guaranteed annual dividend and have preference over other stockholders in the event of liquidating assets. They are however not able to vote http://companylisting.info on board members or other company policies. The term “shareholder” can be used interchangeably with “stakeholder,” but stakeholder is a more broad term which includes employees, customers as well as local communities and suppliers, while shareholders directly contribute to a company’s profitability.