The different types of shareholders within a business are the individuals or institutions who own shares of a company’s stock. Shareholders have different legal rights that permit them to vote on specific corporate issues, receive dividends and have rights to the company’s assets in the event of liquidation. Companies of all sizes and industries offer a variety of goods and services. For instance, Amazon sells a variety of products ranging from books and kitchen appliances, while Apple is known for its unique electronic devices such as smartphones, personal computers or earphones.

There are two types of shareholders in general: common and preferred. Anyone who owns common stock has an ownership share in the company This means they are entitled to vote rights and an element of the company’s profits (if there is a profit). This kind of share typically provides higher returns over the long run, but it may not be able to guarantee a regular dividend. Common stockholders have the right choosing a name for your llc to access company records, including shareholder lists and meeting minutes.

Preferred shareholders receive an annual guaranteed dividend and are entitled to the upper hand over other stockholders in the event of liquidating assets. They are not able vote on the board members or any other policies of the company. The term «shareholders» is synonymous with «stakeholders,» but stakeholders have a wider meaning that includes customers and employees as well as suppliers and local communities. Shareholders are directly invested in the success of a company.