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Individuals or institutions that own shares in a business are the various types of shareholders. Shareholders are entitled to a variety of legal rights that include the right vote on corporate matters, receive dividends and be able to claim assets in liquidation. Businesses of all sizes and industries offer a range of products and services. For example, Amazon sells a variety of items from books to kitchen appliances, and Apple is known for its unique electronic gadgets such as personal computers, smartphones headphones, and watches.

There are two types of shareholders in general: common and preferred. Common stock holders have partial ownership in the company and have the right to vote and a share of profits (if there is any). This type of share typically offers higher returns over the long-term, but may not guarantee a dividend every year. Common stockholders are entitled to access company records, including shareholder lists and meeting minutes.

Preferred shareholders are guaranteed a year-long dividend, in addition to having an advantage over common stockholders when liquidating the company’s assets. They cannot vote for board members or other policies of the company. The term “shareholders” is synonymous with “stakeholders,” but stakeholders have a wider meaning that includes employees and customers, as well as suppliers and local communities. Shareholders are directly involved in the financial success of a business.