Shareholders are a group of people who own a portion of the shares in a company. They have the right to vote on crucial corporate decisions, and they also receive dividends from the company. They are generally concerned about the success of a company so that the value of their stock will increase. However it is true that not all shareholders are created equal, and they play different roles in an organization.
Common shareholders are more prevalent since they can trade their shares on a public stock exchange and Website are also easier to obtain. They are the majority of the shareholding committee of a company. They are entitled to vote on specific decisions, like the selection of the board and changes to the company structure, etc. They also have the right to scrutinize the financial reports of the company as well as documents. When a company is liquidated common shareholders are entitled to claim their assets after settling debts.
Shares of the preferred shareholders have a higher value over other assets of the company in the case of liquidation. They can take over the assets of a company after the other shareholders have been paid, and this is why they are less risky for investors. They typically consist of made up of institutional and private investors.
Activist shareholders are those who purchase shares with the intention of meddling in corporate governance and management decisions. They might seek more dividends or a corporate reorganization to boost the value of their shares. They are typically found in family-owned enterprises, as they are the sole owners of the project and make sure to not to overstep their boundaries or conflict with other owners.
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