The various kinds of shareholders in a firm are the individuals or institutions who own shares of a company’s stock. Shareholders are entitled to various legal rights that include the right vote on corporate issues, receive dividends and get assets in the event of a liquidation. The various types of businesses in the world offer various products and services, which vary in size and industry. For instance, Amazon sells a variety of products from books to kitchen appliances, whereas Apple is famous for its unique electronic devices like personal computers, smartphones headphones, and watches.

There are two types of shareholders in general both preferred and common. Common stock holders hold a view it now portion of ownership in 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 over the long-term but it’s not guaranteed to pay a specific yearly dividend. Common shareholders also have the right to check a company’s records including shareholder registers and minutes of meetings.

Preferred shareholders receive a guaranteed annual dividend and are entitled to preference over other stockholders in the case of liquidating assets. They cannot vote for board members or other company policies. The term „shareholders“ is synonymous with „stakeholders,“ but stakeholders have a broader meaning that includes customers and employees as well as local communities and suppliers. Shareholders are directly involved in the performance of a company.