The different types of shareholders in a company are institutions or individuals who have shares of the company’s stock. Shareholders are entitled to various rights that permit them to vote on specific corporate issues as well as receive dividends and a claim on the company’s assets in the event of liquidation. Companies of all sizes and industries offer a variety of goods and services. Amazon is one example. It sells everything from kitchen appliances to books. Apple is known as an innovator in the field of electronic devices, including headphones, watches, smartphones and personal computers.
There are two types of shareholders the two categories of common and preferred. Anyone who owns common shares has some ownership of the company, which means they are entitled to vote rights as well as a portion of the company’s earnings (if there is a profit). Typically, this type of share has higher rates of return over the longer term but it’s not guaranteed to pay the exact amount of a dividend each year. Common stockholders also have the right to look up the company’s records including shareholder registers and minutes of meetings.
Preferred shareholders receive a guaranteed annual dividend and are entitled to precedence over other stockholders the case of liquidating 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 definition which includes employees and customers, as well as local communities and suppliers. Shareholders directly invest in the success of a company.
companylisting.info/2021/04/06/understanding-types-of-companies/
