The various types of shareholders within a business are individuals or institutions that own shares of a company’s stock. Shareholders are entitled to different rights under the law which include the right to vote on corporate matters, to receive dividends, and take advantage of assets in a liquidation. The various types of businesses across the globe offer an array of items and services that vary by industry and size. Amazon, for example, sells everything from kitchen appliances to books. Apple is known http://companylisting.info/2021/04/06/understanding-types-of-companies/ as a manufacturer of innovative electronic devices, such as smartphones, watches, earphones and personal computers.
There are two types of shareholders in general two types of shareholders: preferred and common. Anyone who holds common stock enjoys some ownership of the company that is, they are entitled to voting rights and an element of the company’s profits (if there is profit). Typically, this type of share has higher rates of return over the long-term however it may not guarantee the exact amount of a dividend each year. Common stockholders have the right to examine company records, including the minutes of meetings and shareholder lists.
Preferred shareholders receive an annual guaranteed dividend and are entitled to precedence over other stockholders the case of liquidating assets. However, they are not allowed to vote on board members and other policies of the company. The term “shareholder” can be used interchangeably with “stakeholder,” but stakeholder is a broad term which includes employees, customers and local communities and shareholders are directly invested in the company’s performance.
