What are the different types of shareholders?

shareholders are owners of shares in the company. When the Company is profitable, they are entitled to a certain share of these profits according to the number of shares they hold. This share of profit, when it is paid to shareholders, is called dividend and is the most common way to compensate shareholders. Other benefits of shareholders include voting rights and shareholders such as bonuses and discounts or gifts related to the company's products or services.

There are two types of shares that a shareholder or holder of his own capital can hold in the company: preferred and common and each comes with his own unique shareholder advantage. Preferred shareholders usually have firm dividends or assets, which makes them less vulnerable to sporadic changes in the company's wealth or even at the time of bankruptcy or sales. Community shareholders who usually represent most of the shareholders of a publicly traded company have their dividends designated by the Board of Directors, and therefore either share in profit or loss of the company as it can be.

, preferred shares can offer greater stability, while ordinary shares, although rather gambling, can earn higher dividends when the company is doing well. There are also stocks that allow changes. For example, “convertible shares” are preferred shares that can be exchanged for ordinary shares at the discretion of the shareholder and “redeemable shares” can be purchased from the shareholder at the discretion of the company.

Another advantage of being a shareholder is the right to vote on decisions that affect the direction of business. Although the specific shareholders' rights will vote depending on the legal jurisdictions, the common questions that swear voting for shareholders relate to changes in name, interests, brand image, services or products such as merger and acquisitions. The shareholders are also usual to choose the Council of the Director of the Organization and its President of the Company.

In addition to the bendAdvanced benefits of dividends and voting rights may include other shareholders' benefits such as bonuses that are paid for other dividends, usually for strong profits. Companies could also offer benefits for shareholders in the form of low -interest loans or in private use of company cars. In some cases, it will be agreed that such great advantages will replace part or all dividend, such as the main compensation of the shareholder.

There is also a wide range of unique benefits of shareholders, which depend mainly on the nature of the company. For example, a cruise boat operator can offer an annual credit on holiday at sea, a clothing seller can offer a 15% discount in its stores or a company that sells chocolate, can send a free box of its product for Valentine and Christmas. Such advantages are not offered by all Companies and are not intended as the main shareholder benefits; They are new supplements used to court of new investors and demonstrate recognition of theircurrent shareholders of the company.