Institutions or individuals who hold shares in a company are the different types of shareholders. Shareholders have a variety of legal rights that allow them to vote on corporate issues as well as receive dividends and a claim on the company’s assets when liquidating. The different kinds of businesses around the world provide a wide range of items and services that vary in size and industry. For example, Amazon sells a variety of products from books to kitchen appliances, whereas Apple is famous for its unique electronic gadgets like personal computers, smartphones headphones, and watches.

In general there are two types of shareholders: preferred and common. Common stock owners have a limited ownership of the company and are entitled to voting rights as well as a share of profits (if there is any). Typically, this type share is more likely to earn a higher return http://companylisting.info/2021/04/23/boost-your-local-visibility-with-google-places-listing/ over the long term however it may not guarantee an annual dividend. Common stockholders have the right to examine the company’s records, including shareholder lists and meeting minutes.

Preferred shareholders receive a yearly dividend, and they also have a priority over common stockholders in the event of liquidating the company’s assets. They are however not able to vote on board members and other policies of the company. The term “shareholder” can be synonymous with “stakeholder,” but stakeholder has a broader definition that includes customers, employees as well as local communities, suppliers and customers, while shareholders directly contribute to a company’s profitability.