Institutions or individuals that have shares in a corporation are the different types of shareholders. Shareholders have different rights under the law, including the right to vote on corporate matters, receive dividends and get assets in the event of a liquidation. The different types of companies in the world offer various items and services that vary according to industry and size. For example, Amazon sells a variety of items ranging from books to kitchen appliances, and Apple is renowned for its unique electronic gadgets such as smartphones, personal computers as well as earphones, watches and other gadgets.

There are two types of shareholders in general two types of shareholders: preferred and common. Anyone who owns common stock is some ownership of the company This means they are entitled to voting rights and part of the company’s earnings (if there is profit). This kind of share typically provides higher returns over the long term, but does not guarantee a dividend every year. Common stockholders are entitled to inspect the company’s records, including shareholder lists and meeting minutes.

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

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