Shareholders and Investors

What are Shareholders?
If you invest into a company by buying shares in that company, you become a shareholder. If you are a shareholder, you have the right to a share in the profits of the company and in theory you also have a say in the running of the company when you attend the various shareholder’s meetings.

As a shareholder you will be looking for success in your company so that the value of your shares increases, and the dividends paid out will be sufficient to meet your projections.

It is this increased profitability in earnings that investors look for, because it is reflected in the dividend paid out in one form or another.

When a private company decides to form itself into a public company, it will register with the Stock Exchange and float its shares to the public. This effectively means that the shares in that company can now be bought and sold by the public through the exchange.

The company is not borrowing from the public; it is offering part ownership to the public in the way of shares.

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