The Different Types of Shareholders in a Business

Institutions or individuals who own shares in a business are the different types of shareholders. Shareholders are entitled to various rights that permit them to vote on certain corporate matters they can also receive dividends and a claim on the company’s assets when liquidating. The different types of companies across the globe offer a wide range of products and services, which vary by industry and size. For instance, Amazon sells a variety of products ranging http://companylisting.info/2021/04/06/understanding-types-of-companies/ from books and kitchen appliances, while Apple is famous for its innovative electronic gadgets including smartphones, personal computers headphones, and watches.

There are two kinds of shareholders both preferred and common. Anyone who owns common stock is only a small share of the company that is, they are entitled to voting rights and part of the company’s profits (if there is a profit). This type of share typically has higher returns over the long run, but it may not guarantee an annual dividend. Common stockholders have the right to examine the company’s records, including shareholder lists and minutes of meetings.

Preferred shareholders are guaranteed a yearly dividend in addition to having a priority over common stockholders in the event of liquidating the company’s assets. However, they are not allowed to vote on board members and other company policies. The term “shareholder” could be used interchangeably with the phrase “stakeholder,” but stakeholder is a more broad term which includes employees, customers as well as local communities and suppliers and shareholders directly contribute to a company’s profitability.

PDF o Imprime este artículo