Individuals or institutions who own shares in a business are the different kinds of shareholders. Shareholders have a variety of legal rights that permit them to participate in voting on certain corporate matters as well as receive dividends and claims on the company's assets in the event of liquidation. Companies of all sizes and sectors offer a variety of products and services. Amazon, for example, sells everything from books to kitchen equipment. Apple is known as an innovator in electronic devices such as headphones, watches, smartphones and personal computers.

Generally there are two types of shareholders: common and preferred. Common stock holders hold a portion of ownership in the company and are entitled to voting rights and a share of profits (if there is any). Typically, this type share has higher rates of return over the long term however it may not guarantee an annual dividend. Common shareholders also have the right to inspect the records of a company for shareholder registers and meeting minutes.

Preferred shareholders receive a guaranteed annual dividend and are entitled to preference over other stockholders in the case of liquidating assets. They cannot vote for board members or other company policies. The term "shareholder" can be used interchangeably with "stakeholder," but stakeholder is a more broad term that includes customers, employees as well as local communities, suppliers and customers, while shareholders directly contribute to the profitability of a company.