What Are the Effects of a Merger on Shareholders?

Businesses generally have numerous stakeholders, including employees, clients, suppliers, shareholders, etc. Shareholders typically vary depending on an organization’s size. Private corporations have fewer shareholders than publicly-listed ones since they can’t sell shares to the general public. On the other hand, it’s a different ball game with publicly-listed listed companies. These companies often have millions of outstanding shares, meaning theoretically, they can have millions of shareholders.

However, that’s not how the real world works because having so many shareholders would be impractical. Essential organization personnel, like C-suite executives and board of directors, will often hold most shares to retain control over a company’s decision-making.

Considering shareholders invest their hard-earned money into an organization, corporations try to please them at every turn.

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