registering your business name

Institutions or individuals that have shares in a corporation are the various types of shareholders. Shareholders have different rights under the law that include the right vote on corporate matters, receive dividends, and be able to claim assets in liquidation. Companies of all sizes and sectors offer a range of products and services. Amazon, for example, sells everything from books to kitchen appliances. Apple is known as an innovator in the field of electronic devices such as headphones, watches, smartphones and personal computers.

Generally there are two types of shareholders: common and preferred. Anyone who owns common shares has some ownership of the company This means they are entitled to voting rights and an element of the company’s earnings (if there is a profit). This type of stock typically provides higher returns over the long term, but does not guarantee an annual dividend. Common stockholders have the right to look over company records, such as the minutes of meetings and shareholder lists.

Preferred shareholders are guaranteed a annual dividend in addition to having priority over common stockholders if liquidating the company’s assets. They are not able vote on board members or other company policies. The term “shareholder” can be used interchangeably with “stakeholder,” but stakeholder is a more broad term which includes employees, customers as well as local communities and suppliers and shareholders directly contribute to the company’s financial success.