Shareholders and Stakeholders

Question 1

What are the stakeholders?

Answer 1

Any individual or group on which the activities of the company have an impact

Question 2

What are the shareholders?

Answer 2

They are stakeholders who invest their money to provide risk capital for the company

Question 3

What is shareholder activism?

Answer 3

It is when shareholders use their influence in the company to change the way business is done.

Question 4

What are the reasons for the disagreements between shareholders?

Answer 4

shareholders do not have a single, common event horizon, they have different objectives, they vary by size

Question 5

What is the free rider problem?

Answer 5

the free rider problem happens when one investor bears the cost of shareholder actions, while the others enjoy the benefits.

Question 6

What is a block holder?

Answer 6

it is an investor with a significant ownership position in a company’s stock

Question 7

what are the institutional shareholders?

Answer 7

mutual funds, hedge funds and other investment groups

Question 8

What are the activist investors?

Answer 8

they are shareholders who use their position to pursue governance changes at a corporation