Shareholders are basically the owners of the company, they are the financers of the company who ensure that the company doesn’t go low on finances in terms of capital or anything to do with finances. The companies that have shareholders tend to benefit big time as they rely on the shareholder’s investment to keep the company running. However this is two way as the shareholders too will benefit from the company and in case the company fails then the shareholders lose too. Shareholders do play a huge role in the operations and also the financing this means in the company where shareholders are involved tend to rely on each other. Both the company and shareholders depend on each other and that’s why they must work together to achieve their goals.
Investors are people who are needful in benefiting in companies through shareholding and also other ways. Investors need a company that generates cash and can easily meet its expectations and any company that seem inferior in meeting its goals you will never find investors there since it’ll be a waste of money and time. Investors are beneficial people and in case they realize the company they have invested on doesn’t perform adequately then they tend to quit with their shares. The reason why shareholders have a say in any company they have shares it’s because they are eligible to appoint seniors of the company without involving the management. The shareholders are beneficial as they benefit from the company and vice versa that means they need each other to prosper. The best thing any company must do is to meet their goal as that’s the only way to win the shareholder’s trust. The only reason to satisfy shareholders is by meeting the targets and going higher by the day.
If shareholders don’t push, the company might lose its value and that is a loss to all shareholders and the company that’s why shareholders must ensure effectiveness is met in the company. Shareholders are vital as they are used to ran the company and in case they are not content with the management they have authority to quit or to re-elect new seniors. The shareholders in the public companies tend to have authority to terminate the elected in case they feel they are not satisfied. By so doing the company and shareholders will be safe and the management will be in stable motion of handling issues. Shareholders have a say in every company as they are the main investors and in case they terminate their shares then the company can easily lead into closure.
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