Business Dictionary
Shareholder
Definition
An owner of shares in a company.
Deep Dive
A shareholder, often interchangeably called a stockholder, is an individual or institution that legally owns one or more shares of stock in a company. By holding shares, shareholders possess a partial ownership stake in the company and are entitled to certain rights, typically including the right to vote on corporate matters (like electing the board of directors), receive dividends if declared, and access company financial information. Their primary interest is usually financial, seeking capital appreciation of their shares or income from dividends.
Examples & Use Cases
- 1An individual investor who buys 100 shares of a publicly traded tech company through a brokerage account
- 2A venture capital firm holding a significant equity stake in a rapidly growing startup in exchange for funding
- 3An institutional investor like a pension fund owning a diversified portfolio of shares across hundreds of corporations to provide retirement benefits.
Related Terms
StockholderEquityInvestor