ASSIGNMENT 1 SEMESTER 1 2025
UNIQUE NO.
DUE DATE: 2 APRIL 2025
, FIN2603
Assignment 1 Semester 1 2025
Unique Number:
Due Date: 2 April 2025
Finance for Non-Financial Managers
Question 1: Shareholders and Their Types
1. Definition of a Shareholder
A shareholder is an individual or entity that owns shares in a company and,
as a result, has a financial interest in the company's performance.
Shareholders may receive dividends and have voting rights in company
decisions.
2. Types of Shareholders
Ordinary Shareholders: Own common stock and have voting rights but are
last to receive payments in case of liquidation.
Preference Shareholders: Receive fixed dividends before ordinary
shareholders but typically lack voting rights.
Institutional Shareholders: Large organizations such as pension funds,
insurance companies, and mutual funds that invest in company shares.
Retail Shareholders: Individual investors who own shares for personal
investment.
Majority Shareholders: Hold more than 50% of a company’s shares and can
influence major company decisions.