Shareholders

Question 1

what is role of shareholder?

Answer 1

1. to provide capital - which is money invested into a business. which enables a business to conduct commerce - invest in equity capital invested by owners which does not need to be repaid.
2. to review social performance - shareholders want to know if a company is contributing to society. are the employing workers on very low wages and poor conditions. coperate social responsbility is shareholder responsbility to manage that.
3. to contribute expertise and experiences.

Question 2

why shareholders invest?

Answer 2

1. to achieve capital gain= they may buy shares in a business when share prices are low and sell them when share prices have risen to make a profit.
2. shareholder may be paid a dividend in return for their investment. dividends are paid on per share basis so more shares a shareholder own the bigger the dividend.
3. some shareholder invest in a company because they believe in the aims and objectives of the company and want to see it succeed. for e.g social, ethical and environmental objectives.

Question 3

venture capitalist

Answer 3

• is type of shareholder they will invest in business that they think they have potential to be successful. this can be a big financial risk but can lead to large financial rewards.