Shareholder Types

What are Shareholder Types?

Shareholder are individuals or an organization that have residual claim or financial claim over the assets of the business and can be bifurcated into two broad types namely the common shareholders and preferred stakeholders. Further classification of shareholders could be performed on class basis such as Class A, Class B and Class C etc.

Shareholder Types

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Source: Shareholder Types (wallstreetmojo.com)

Top 2 Types of Shareholders

On a broader level, the shareholdersShareholdersA shareholder is an individual or an institution that owns one or more shares of stock in a public or a private corporation and, therefore, are the legal owners of the company. The ownership percentage depends on the number of shares they hold against the company's total shares.read more can be classified as preferred stockholders and common shareholders.

#1 – Common Shareholders

#2 – Preferred Shareholders

Conclusion

The business normally has two types of shareholders. They can be classified as preferred stockholders and common stockholders. The common stockholders are large in the count, whereas preferred stockholders are few in the count.

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This has been a guide to Shareholder Types and its definition. Here we discuss the top 2 types of shareholders along with a detailed explanation.  You may refer to the following articles to learn more about finance –