The various kinds of shareholders in a business are individuals or institutions that hold shares of a company’s stock. Shareholders are entitled to various rights that permit them to participate in voting on certain corporate matters, receive dividends and have an interest in the company’s assets in the event of liquidation. The different kinds of businesses across the globe offer an array of products and services that differ according to industry and size. For instance, Amazon sells a variety of items ranging from books to kitchen appliances, and Apple is famous for its unique electronic devices such as personal computers, smartphones as well as earphones, watches and other gadgets.
Generally, there are two kinds of shareholders: common and preferred. Common stock holders have partial ownership of the company and have voting rights as well http://companylisting.info/ as a share of profits (if they have any). This type of share generally offers higher returns over the long term, but does not be able to guarantee a regular dividend. Common stockholders are entitled to examine company records, such as the minutes of meetings and shareholder lists.
Preferred shareholders receive a yearly dividend and also have a priority over common stockholders if liquidating the company’s assets. They are however not able to vote on board members or other company policies. The term «shareholders» is synonymous with «stakeholders,» but stakeholders have a broader meaning that includes employees and customers as well as suppliers and local communities. Shareholders are directly invested in the performance of a company.