Institutions or individuals who own shares in a company are the various kinds of shareholders. Shareholders have a variety of legal rights that permit them to participate in voting on corporate matters as well as receive dividends and a claim on the company’s assets when liquidating. Companies of all sizes and sectors provide a wide range of products and services. Amazon for instance, sells everything from books to kitchen appliances. Apple is known as an innovator in the field of electronic devices such as headphones, watches, smartphones and personal computers.
Generally, there are two kinds of shareholders: common and preferred. Anyone who owns common stock has only a small share of the company This means they are entitled to vote rights as well as some of the company’s profits (if there is a profit). Typically, this kind of shares have higher rates of return over a long companylisting.info/2021/04/15/how-to-register-a-business-name/ period however it may not guarantee the exact amount of a dividend each year. Common stockholders are entitled to access company records, including meeting minutes and shareholder lists.
Preferred shareholders receive a yearly dividend, and they also have an advantage over common stockholders when liquidating the company’s assets. They are however not able to vote on board members and other policies of the company. The term “shareholders” is synonymous with “stakeholders,” but stakeholders have a wider meaning that includes employees and customers, as well as suppliers and local communities. Shareholders are directly invested in the profitability of a company.