Institutions or individuals that own shares in a business are the various types of shareholders. Shareholders have a variety of legal rights, including the right to vote on corporate issues, receive dividends, and claim assets in a liquidation. The various types of businesses around the world offer a wide range of products and services that differ according to industry and size. Amazon, for example, sells everything from books to kitchen equipment. Apple is known as an innovator in electronic devices, such as smartphones, watches, earphones and personal computers.

In general there are two types of shareholders: common and preferred. Common stock holders hold a portion of ownership of the company and have voting rights and a percentage of profits (if there are any). This kind of share typically will yield higher returns in the long-term, but may not be able to guarantee a regular dividend. Common stockholders also have the option to inspect the records of a company for the minutes of meetings and shareholder registers.

Preferred shareholders receive a yearly dividend, in addition to having priority over common stockholders when liquidating the company’s assets. They are not able to vote on the board members or any other policies of the company. The companylisting.info/2021/04/06/understanding-types-of-companies/ term “shareholders” is synonymous with “stakeholders,” but stakeholders have a broader meaning that includes customers and employees as well as local communities and suppliers. Shareholders are directly invested in the performance of a business.