How Are Officers, Directors, & Shareholders Different?
Video Transcript How Are Officers, Directors, & Shareholders Different? You have recently invested in a corporation on Wall Street and you are now known as a shareholder. But you’re hearing terms like board of directors and officers of the corporation and you’re somewhat confused. What’s the difference between officers, directors and shareholders. Hello, I’m Robert Todd and I’m here to answer the question, “how are officers, directors and shareholders different”. Well, it might be helpful to think of the shareholders as the individual owners of the corporation whose investment for the share is the financial investment to the corporation, the capital, if you will, that the corporation has. The shareholders elect the board of directors to manage the corporation, to set policies for the corporation and to to decide which direction the corporation is going to, go in. The board of directors then elect the officers of the corporation such as the president, the vice president and the secretar