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Individuals or institutions that hold shares in a company are the different kinds of shareholders. Shareholders are entitled to various rights that allow them to vote on certain corporate matters as well as receive dividends and a claim on the company’s assets in the event of liquidation. The various types of businesses across the globe offer a wide range of products and services, which vary in size and industry. For example, Amazon sells a variety of products from books to kitchen appliances, whereas Apple is renowned for its innovative electronic gadgets like personal computers, smartphones as well as earphones, watches and other gadgets.

Generally, there are two kinds of shareholders: preferred and common. Common stock holders have partial ownership of the company and are entitled to voting privileges and a share of profits (if there are any). Typically, this type of stock has higher rates of return over the long-term however it may not guarantee an annual dividend. Common stockholders are entitled to access company records, such as shareholder lists and meeting minutes.

Preferred shareholders receive an annual guaranteed dividend and have the upper hand over other stockholders in the event of liquidating assets. They are unable to vote for board members or other company policies. The term « shareholder » can be synonymous with the phrase « stakeholder, » but stakeholder is a more broad term that includes customers, employees, suppliers and local communities and shareholders directly invest in the company’s performance.