shareholders
Stockholder
shareholders
the individuals and INSTITUTIONAL INVESTORS who contribute funds to finance a JOINT-STOCK COMPANY in return for SHARES in that company There are two main types of shareholder:- holders of PREFERENCE SHARES who are entitled to a fixed DIVIDEND from a company's PROFITS (before ordinary shareholders receive anything), and who have first claim on any remaining assets of the business after all debts have been discharged;
- holders of ORDINARY SHARES who are entitled to a dividend from a company's profits after all other outlays have been met and who are entitled to any remaining ASSETS of the business in the event of the company being wound up (LIQUIDATED).
Generally only ordinary shareholders are entitled to vote at ANNUAL GENERAL MEETINGS and elect DIRECTORS, since they bear most of the risk.
shareholders
the individuals and institutions who contribute funds to finance a JOINT-STOCK COMPANY in return for SHARES in that company There are two main types of shareholder:- holders of PREFERENCE SHARES, who are entitled to a fixed DIVIDEND from a company's PROFITS (before ordinary shareholders receive anything) and who have first claim on any remaining assets of the business after all debts have been discharged;
- holders of ORDINARY SHARES, who are entitled to a dividend from a company's profits after all other outlays have been met and who are entitled to any remaining ASSETS of the business in the event of the company being wound up. Generally, only ordinary shareholders are entitled to vote at the ANNUAL GENERAL MEETING and to elect directors, since they bear most of the risk of losing their money in the event of company INSOLVENCY.
shareholders
See stockholders.