An investor, generally called a shareholder, could be a person, corporation, or organization that holds a minimum of one share of a firm’s equity stock. Shareholders get the rewards of a company’s success since they effectively own it. enlarged stock costs or money earnings delivered as dividends area unit samples of these edges.

When an organization loses cash, the share value lowers, which may lead to shareholders losing cash or seeing their portfolios suffer losses.

A majority investor could be a single investor UN agency owns and controls quite five hundredths of a company’s outstanding shares. Minority shareholders, on the opposite hand, area unit people UN agency own but five hundredths of a corporation’s equity. As residual claimants on a company’s earnings, shareholders area unit vulnerable to capital gains (or losses) and/or dividend payments. The rights of shareholders as well as the protection of minority shareholders area unit ruled beneath the businesses Act, 2013.