Difference between revisions of "Shareholder"

Latest revision as of 15:15, 11 January 2023

What is a Shareholder?

A shareholder is an individual or institution that owns shares in a public or private corporation. Shareholders are typically motivated by the potential to earn dividends on their investment, and they also hope to see the value of their shares increase over time.

There are three primary types of shareholders: common, preferred, and institutional.

Common shareholders are the most prevalent type of shareholder, and they typically have voting rights.
Preferred shareholders generally do not have voting rights, but they may have a preference when it comes to receiving dividends or assets in the event of liquidation.
Institutional shareholders are typically large organizations, such as banks or insurance companies, that invest in a company for financial gain.

The role of shareholders is to elect the board of directors, and they may also vote on major corporate decisions. Shareholders also have the right to file lawsuits if they believe the company has engaged in fraudulent activities.

References

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-A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company’s [[stock]] (equity). Because shareholders are a company's owners, they reap the benefits of the company's successes in the form of increased stock valuation or profits distributed as dividends. If the company does poorly and the [[price]] of its stock declines, however, shareholders can lose money.<ref>Definition - What does Shareholder Mean? [https://www.investopedia.com/terms/s/shareholder.asp Investopedia]</ref>
+== What is a Shareholder? ==
+A '''shareholder''' is an individual or institution that owns shares in a public or private corporation. Shareholders are typically motivated by the potential to earn dividends on their investment, and they also hope to see the value of their shares increase over time.
+There are three primary types of shareholders: common, preferred, and institutional.
+*Common shareholders are the most prevalent type of shareholder,  and they typically have voting rights.
+*Preferred shareholders generally do not have voting rights, but they may have a preference when it comes to receiving dividends or assets in the event of liquidation.
+*Institutional shareholders are typically large organizations, such as banks or insurance companies, that invest in a company for financial gain.
+The role of shareholders is to elect the board of directors, and they may also vote on major corporate decisions. Shareholders also have the right to file lawsuits if they believe the company has engaged in fraudulent activities.
 == See Also ==
 *[[Business]]
-*[[Business Strategy]]
-*[[IT Strategy (Information Technology Strategy)|IT Strategy]]
-*[[IT Governance]]
 == References ==
 <references />
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