Stockholders as a separate group are a relatively new development in business. The objective of holding stock, for these people, was ownership and control. Stockholders as a separate group are a relatively new development in business. A stockholder is considered to be separate from the corporation and as a result, will have limited liability as far the corporation’s obligations. There are two types of a stockholder that are given below:
(a) Individual investor’s: The public at large become significant holders of corporate stock of one or more companies. People practically every occupational group own stock. Such as-Professional people, formers teacher, a worker at all organization level, merchant’s public- service workers and a few groups that own stock. As stock ownership became more diversified and as greater numbers of people held. Smaller amounts of stock their reasons for holding stock changed.
(b) Institutional investors: The growth of institutional investors was phenomenal that means ownership is a large co-operation. The institutional investor indirect ownership through purchasing. Shares of an institution such as – bank, savings, and loan association, personal funds, insurance company, investment companies etc.