The various kinds of shareholders in a company are individuals or institutions that have shares of the company’s stock. Shareholders have a variety of legal rights that permit them to participate in voting on specific corporate issues they can also receive dividends and rights to the company’s assets when liquidating. Businesses of all sizes and industries provide a wide range of products and services. For instance, Amazon sells a variety of items ranging from books to kitchen appliances, and Apple is known for its innovative electronic gadgets such as smartphones, personal computers, earphones and watches.

There are two types of shareholders in general the two categories of common and preferred. Anyone who owns common stock has only a small share of the company This means they are entitled to vote rights and some of the company’s earnings (if there is profit). This type of share typically will yield higher returns in the long run, but it may not guarantee an annual dividend. Common stockholders also have the ability to look up the company’s records for shareholder registers and minutes of meetings.

Preferred shareholders are guaranteed a year-long dividend, in addition to having an advantage over common stockholders if liquidating the company’s assets. They are unable to vote for the board members or any other policies of the company. The term „shareholders“ is synonymous with „stakeholders,“ but stakeholders are a broad term that includes employees and customers, as well as suppliers and local communities. Shareholders are directly invested in the profitability of a business.

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