The various kinds of shareholders in a firm are the individuals or institutions who hold shares of a company’s stock. Shareholders have a variety of legal rights that permit them to participate in voting on certain corporate matters, receive dividends and have rights to the company’s assets in the event of liquidation. The different kinds of http://companylisting.info/2021/04/15/how-to-register-a-business-name/ businesses around the world provide various products and services that differ according to industry and size. Amazon for instance, sells everything from kitchen appliances to books. Apple is known as a maker of cutting-edge electronic devices, such as phones, watches, earphones and personal computers.
Generally there are two types of shareholders: common and preferred. Anyone who owns common stock is some ownership of the company This means they are entitled to vote rights as well as part of the company’s profits (if there is profit). Typically, this type of share is more likely to earn a higher return over the longer term but may not guarantee the exact amount of a dividend each year. Common stockholders are entitled to inspect company records, including shareholder lists and meeting minutes.
Preferred shareholders receive a guaranteed annual dividend and are entitled to preference over other stockholders in the event of liquidating assets. They cannot vote for board members or other company policies. The term “shareholder” is often used interchangeably with the phrase “stakeholder,” but stakeholder has a broader definition that includes customers, employees as well as local communities and suppliers and shareholders directly invest in the company’s performance.