Yesterday, I’ve learned that a South Korean multinational entertainment company, HYBE Entertainment who is the home of a super popular K-Pop band BTS, became a shareholder for a K-Pop music company, SM Entertainment, which cause a huge controversy for the past week. Correct me if I’m wrong.
I want to know more about shareholders like what they do, what they process. I’ve been surfing the Internet for information and seeing how many labels or companies were under HYBE.
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Shareholders collectively own the company. If a company makes profits, the shareholders each get their share (this part is a simplification, but generally how it works). Shareholders also get to vote on which executives will be put in charge of running the company and various other governance decisions.
For instance, AAPL has 15 billion shares outstanding. If they decided to pay out 15 billion dollars in dividends, you’d get $1 for each share you owned.
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