Corporate shareholders, also called stockholders, are stakeholders in the company who are considered owners. In most companies, once a year there is a vote on who will serve on the company's board of directors. In turn, the Board of Directors selects the company's senior management who will manage the day-to-day operations of the company. Such as the decisions of senior executives in day-to-day operations that make a company profitable or loss-making. If shareholders don't like the results, they can vote to remove members of the board of directors and hire new members of senior management themselves. Some items the Board of Directors will vote on include the issuance of new common stock; they can and also many times a company is looking to expand their operations or may be looking to go in a completely different direction than when they were first funded. This can be done by either a publicly traded company or a non-publicly traded company, which is also considered a private company. When a private company goes public, it is called an initial public offering (IPO). Whatever the status of the company, despite the advantages and disadvantages of issuing additional shares. An obvious disadvantage is the dilution of existing shareholders' ownership by reducing their effective ownership in the company as a percentage. A non-profit organization also returns excess funds to the organization. It's the whole reason for their existence when it comes to a company issuing stock. The goal of a shareholder or shareholder is also to make money. Shareholders benefit from company profits in the form of stock appreciation and dividends paid by the company. Increasing profits may lead to a decision by a company's board of directors to increase its scheduled dividend payments. This is something that is in their best interest to do since the members of the Board of Directors are usually very large shareholders of the company, so they give themselves an increase in compensation even through the shares they purchase.