The additional resources different kinds of shareholders in a company are institutions or individuals who have shares of the company’s stock. Shareholders have different legal rights which allow them to vote on corporate issues as well as receive dividends and claims on the company’s assets in the event of liquidation. Businesses of all sizes and sectors offer a variety of products and services. Amazon is one example. It sells everything from kitchen appliances to books. Apple is known as a maker of cutting-edge electronic devices like smartphones, watches, earphones and personal computers.
There are two types of shareholders the two categories of common and preferred. Anyone who owns common stock has partial ownership of the company This means they are entitled to vote rights and an element of the company’s earnings (if there is a profit). In general, this type of shares have higher rates of return over a long period but may not guarantee an annual dividend. Common shareholders also have the right to inspect the records of a company including the minutes of meetings and shareholder registers.
Preferred shareholders are guaranteed a yearly dividend, and they also have the advantage over common stockholders in the event of liquidating the company’s assets. However, they cannot vote on board members and other company policies. The term “shareholder” can be used interchangeably with “stakeholder,” but stakeholder is a more broad term that includes employees, customers, suppliers and local communities, while shareholders are directly invested in the company’s performance.