There are various http://companylisting.info/ types of shareholders in a business. These include common stockholders, favored shareholders and debenture holders. Each type seems to have different rights and rewards depending on the talk about class that they hold.
Shareholders of a company buy stocks and shares to gain control of the business and profit from the growth of the business. They acquire cash either through the appreciation on the market value of their shares as well as dividends that they receive in the event that this company does well and makes a profit.
Some shareholders may also become directors on the business. They will vote upon key decisions, such as if to say yes to or refuse to mergers and other significant corporate decisions.
These people usually are not personally responsible for the credit and responsibilities of the business. As such, all their personal possessions remain secure even if the business goes broke.
The most common sort of shareholders is certainly ordinary or common investors. These people own voting rights and can file suit the company as a group for any wrongdoing that could damage the company.
They also have the justification to choose the board of trustees of the organization, if it is simply being liquidated. They are really entitled to a percentage of the income if the business is sold away by creditors.
Preferred stockholders are the second type of investors. These individuals currently have a priority claims to the company’s income and therefore are paid out 1st, followed by loan companies and bondholders. That they hold favored stock, a hybrid security with collateral and debt features.