Corporate ownership refers to the legal structure in which a corporation is owned by shareholders. These shareholders can be individuals or other entities that invest money in the corporation in exchange for ownership shares. The more shares a person owns, the greater their stake in the company, which often translates to more influence over corporate decisions.
In a corporate setting, ownership is typically divided into common and preferred shares. Common shares allow shareholders to vote on important matters, such as electing the board of directors, while preferred shares usually provide fixed dividends but do not carry voting rights. This structure helps corporations raise capital while distributing ownership among many investors.