Shareholders can be categorized into different types based on their ownership and role within the company:
- Common Shareholders: They own common stock and typically have voting rights. - Preferred Shareholders: They own preferred stock, usually without voting rights, but with a higher claim on assets and earnings. - Institutional Shareholders: These include mutual funds, pension funds, and insurance companies that invest large amounts of money in the company. - Retail Shareholders: Individual investors who buy and hold shares for personal investment purposes.