Shareholder Types

Updated on January 4, 2024
Article byRishab Nigam
Edited byAshish Kumar Srivastav
Reviewed byDheeraj Vaidya, CFA, FRM

What are Shareholder Types?

Shareholders are individuals or organizations with a residual claim or financial claim over the business’s assets and can be bifurcated into two broad types: common shareholders and preferred stakeholders. In addition, further classification of shareholders could be performed on a class basis, such as Class A, Class B, Class C, etc.

Shareholder Types

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Source: Shareholder Types (wallstreetmojo.com)

Top 2 Types of Shareholder

Broadly, 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.

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#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.

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