What are shareholder external or internal?

Answer 1

Shareholders can be classified as either internal or external based on their relationship with the company. Internal shareholders, such as employees and company executives, have a direct stake in the company and often participate in its management and decision-making. External shareholders, on the other hand, are individuals or entities that own shares but do not have a direct role in the company's operations, such as individual investors or institutional investors. Both types of shareholders have a vested interest in the company's performance but engage with it in different ways.