Shareholders

Question 1

What is a shareholder?

Answer 1

One of the owners of a company who invests capital in return for decision making power, and a share of a company’s profits.

Question 2

What is a shareholders role?

Answer 2

To provide capital, enabling commerce
To appoint the directors of the company
To hold directors to account
To review financial performance
To review social performance
To monitor executive pay
To contribute expertise/ experience

Question 3

What is the difference between a public limited investor, and a private limited investor?

Answer 3

Private limited investors have more control of their share, so they get to make their thoughts and wants known/ visible.

Question 4

Why do shareholders invest?

Answer 4

Provide financial support
Be involved in decision making
Financial reward in terms of dividend payment
Financial reward in terms of capital gains (a profit from the sale of property or an investment.)
To gain control of a business by buying 51% if shares

Question 5

What are capital gains?

Answer 5

Financial reward in terms of capital gains (a profit from the sale of property or an investment.)