stockholders Who are the stockholders of a corporation?What are their responsibilities and objectives?
Stockholders, or shareholders, in a company are those who have invested money in that company by buying stocks; the stocks represent their investment in the company. The company uses the invested money to promote whatever service, manufactured item, etc., the company is involved in carrying out/making. The shareholders do not have to do any work for the company, and they cannot be held liable if there is a law suit. However, shareholders can lose their investments which are not protected in any way. If the value of a stock increases, it is to the advantage of the stockholder. That is why people invest money: hoping that it will grow in value—selling a stock at a higher price than it was originally purchased for. However, if the stock drops on the stock market, investors lose money.
Even a "small investor" is a stock holder if he owns a share of a publicly traded company. The average investor is just that -- making an investment in the future value of a company's stock so that at some point in the future he could sell his stock for a higher price/value than what he paid for it. He probably doesn't have any responsibility in the company or any say in how the company is run. Large stock holders on the other hand are usually on a board of officers who are the ultimate bosses. These are the people who hold the ownership of the company and to whom the management of the company must report to in regards to how the company is run and how the company plans to make more money for the those investors in the future.
One of the responsibilities of the stockholders of a company is to make their contribution in deciding how a company is being run. There are several decisions that the board of management of a company can only take after the approval of the stockholders has been obtained. Though a large number of people have only a few shares of the company and the few that own a large number of shares have a higher ability to influence the final decision small stockholders should exercise their power to vote on crucial issues. Sometimes, even a single vote could decide what course of action the company takes.
I disagree with post 2. There are more stockholders today due to online firms, such as ameritrade, etrade, scottrade and the like. Stockholders are people who buy shares of stocks in companies, ETFs (Exchange Traded Funds) or commodities through a stock exchange. They are part owners of a company. Most individuals own too little to make any decisions or to sway a company. They own stocks with the hopes of making money. For example, you can own 1 share of Apple computer for 500 dollars.
The objective of a stockholder is generally to make money. Most investors have no other reason to be holding stock in the company. They also have no responsibilities. Their only responsibilities are those that they put upon themselves--for example, they might feel a need to push firms they own stock in to conduct themselves in more socially responsible ways.
Stockholders are, strictly speaking, individuals who own shares in a publicly traded firm. Their objectives range from getting rich quick to seeking a solid investment depending on the kind of stock. Today, a decreasing number of individual households own stocks. More people own them through mutual funds, pensions, and other financial instruments.
Stockholders are also allowed certain rights in the company based on the number of shares they own and how much their shares are worth. Depending on the company and the contract, shareholders can influence the board of directors, block or introduce resolutions, and influence the price of the stock by acting publicly (selling short).
Most stockholders want good financial returns on their investments. Some seek to make quick profits; others seek out companies in which they can invest in the long run. More and more stockholders seem to be seeking quick profits -- a fact that is not good for the economy or for the companies in which these people invest.
Stockholders are partial owners of a company. Even if a person owns one share in a company, he is technically still an owner. The larger the percentage of the total possible shares, the more important the shareholder is and the more control he has over the company. Most shareholders have very little control.