What are the different types of shareholders?

What are the different types of shareholders?

There are mainly two types of shareholders: common shareholders and preferred shareholders. Common shareholders have voting rights and may receive dividends, while preferred shareholders typically receive fixed dividends and have priority over common shareholders in asset liquidation.

Can you explain the rights of common shareholders?

Common shareholders have the right to vote on major company decisions, such as electing the board of directors and approving mergers. They also have the right to receive dividends, although these are not guaranteed.

What about preferred shareholders? What are their benefits?

Preferred shareholders usually receive fixed dividends before any dividends are paid to common shareholders. They also have a higher claim on assets in the event of liquidation, but they typically do not have voting rights.

Are there any other types of shareholders I should know about?

Yes, there are also institutional shareholders, like mutual funds and pension funds, and retail shareholders, who are individual investors. Each type has different influences and interests in the company.