Institutions or individuals who have shares in a corporation are the different types of shareholders. Shareholders have a variety of legal rights that permit them to vote on corporate matters, receive dividends and have a claim on the company’s assets in the event of liquidation. The various types of businesses around the world provide Website a wide range of products and services that differ by industry and size. Amazon is one example. It sells everything from kitchen appliances to books. Apple is known as a manufacturer of innovative electronic devices like headphones, watches, smartphones and personal computers.
There are two types of shareholders in general both preferred and common. Anyone who owns common stock is some ownership of the company that is, they are entitled to vote rights and a portion of the company’s profits (if there is a profit). In general, this type of stock has higher rates of return over the long-term however it may not guarantee the exact amount of a dividend each year. Common stockholders are entitled to access company records, such as shareholder lists and minutes of meetings.
Preferred shareholders are guaranteed a year-long dividend and also have priority over common stockholders should they liquidate the company’s assets. They cannot vote for board members or other company policies. The term “shareholder” can be synonymous with “stakeholder,” but stakeholder is a more broad term that includes customers, employees as well as local communities, suppliers and customers, while shareholders directly invest in the profitability of a company.
