Shareholders are a group of people who hold a share of ownership in a company. They are entitled to vote on key company decisions, and also receive dividend payments from the company. They are interested in the growth and success of a company so that their stock value increases. However it is true that not all shareholders are made equal and play different roles in the company.

Common shareholders are the most common kind of investors because they have shares that can be traded in a stock exchange market and therefore are easier to acquire. They represent the majority in a company’s shareholding body and have the view it now right to vote on specific decisions, including the selection of the board, changes to the company structure, etc. They also have the right to scrutinize the company’s financial reports and documents. After settling all debts, the common shareholders of a liquidated firm are entitled to claim their assets.

Shares of the preferred shareholders are more valuable than other assets of the company in the event of liquidation. They are entitled to claim assets once other shareholders have been paid off. This reduces the risk for investors. They usually consist of a mix of institutional and private investors.

Shareholders who are active shareholders purchase shares to influence management decisions and governance. They might ask for a larger dividend payout or a corporate restructuring to increase the value their shares. These shareholders are typically found in family-owned businesses, as they own the company and take care to not to overstep their boundaries or clash with other owners.