eli5: How many stocks must one own before getting to have their input at least heard by a company?


eli5: How many stocks must one own before getting to have their input at least heard by a company?

In: Economics

I don’t think “having input heard” is something that’s standardized. But if you’re looking for the requirements you have to fulfill to be invited to a shareholder’s meeting (which might, in a way, be what you had in mind), then the answer is [“It depends”](https://www.dlapiperintelligence.com/goingglobal/corporate/index.html?t=08-shareholder-meeting-requirements).

1 share, you get to vote on the prospectus (although your voice is fairly insignificant). Prospectus voting is typically issues surrounding the board of directors, accounting, etc.

One share. 🙂

If you’re a shareholder in a company, every year they’ll have a meeting where they tell you how things are going, and often there are decisions like “should we start this megaproject” where all the shareholders get to vote. You can either attend the meeting in person, or you can vote by filling out a form.

Of course, you’re getting one vote while some people are going to get 250,000 votes, so your input isn’t getting heard very much, but it is getting heard.

There are actually people who buy one share in every local company just so they get to be invited to their shareholders meeting. In addition to free coffee and snacks and ability to talk to actual business people they do get to sit inn on the meeting to hear everyone’s opinion and voice their own. However as to actual power over the company there is only one vote per share. So it is easy to just ignore them. In order to have any sort of power over the company you need to have a significant fraction of the shares, just like in a democracy.

It should also be noted that some companies also have non-voting shares. The intention is to be able to separate the majority and minority shareholders. It is easier to buy these non-voting shares but you will not get any votes like the other shareholders. You still get any dividend or offers of buyback that everyone else does though.

Your post has been removed because ELI5 is not for straightforward factual queries.