Shareholders are people that hold partial ownership in a company. They have the right to vote on major company decisions, and also receive dividends companylisting.info/2021/02/23/pros-and-cons-of-using-free-business-listing-sites/ from the company. They are concerned about the growth and success of a company, in order that their stock value will increase. There are many different shareholders and they have different roles in a company.
Common shareholders are more popular due to the fact that they can trade their shares on a public stock exchange and are more easy to obtain. They are the majority in the shareholding body of a company and have the right to vote on specific decisions, like the selection of candidates for the board, changes to the company structure and so on. They also have the right to review the financial statements and company documents. After settling all debts the common shareholders of a liquidated company can claim their assets.
Preferred shareholders own shares that are more valuable than other types of company assets in the event of liquidation. They can claim assets when other shareholders have been paid off. This reduces the risk for investors. They are usually a mixture of both private and institutional investors.
Activist shareholders are individuals who purchase shares with the intention of meddling in the management of a company and its governance decisions. They might request a larger dividend payout or a corporate restructuring to increase the value their shares. These shareholders are usually located in family-owned businesses as they see the project as their own, but they take care not to outdo their roles and clash with other owners.