What is the shareholder?

The shareholder is an individual who owns at least one share of shares in a given company. Most often, this term concerns individuals who hold shares in publicly held companies, which means that companies are trading on a stock exchange such as the New York Stock Exchange. However, a private company can also issue shares to owners and the owners are also referred to as shareholders.

are also called shareholders, shareholders have a shareholder in the company whose shares own. When the company issues shares, it determines how much it needs to issue to raise funds it needs. The percentage of ownership in the company has a shareholder depends on how many shares the company has. For example, if the company issues 100,000 shares and shares holders owns 90,000 shares, the shareholder has a control stake and can dictate what is happening. On the other hand, if the Company issues 100 million shares of shares, then a shareholder who owns 90,000 shares does not have much influence or so much tothe one -to -use interest.

shareholders who own part of the company may benefit when this company is doing well. Most often, the way the shareholder benefits from the company's good performance is when the stock price increases. The company can also directly share its profits with its shareholders in the form of dividends. Dividend is the payment of some of the company's earnings directly to shareholders; Dividend can be several cents per share.

shareholders are given the opportunity to vote and have a word in business affairs. When corporations want to take certain steps, they send a prospectus to shareholders who can then vote online or send their votes by mail. Corporations must also share data on their performance, such as their earnings and balance sheets, with their identical information through publication information.

Sometimes shareholders play a very important role in taking over the company. An individual or group IIndeed, novestors can achieve a hostile takeover by purchasing a control part of the business shares. They can do so by the fact that the offer directly to all shareholders of the company - usually at a price higher than every share of shares currently sells them - in the hope that all shareholders will sell them their shares, which will provide them with control.