The difference between a stockholder and a shareholder — AccountingTools (2024)
The terms stockholder and shareholder both refer to the owner of shares in a company, which means that they are part-owners of a business. Thus, both terms mean the same thing, and you can use either one when referring to company ownership.
To delve into the underlying meaning of the terms, "stockholder" technically means the holder of stock, which can be construed as inventory, rather than shares. Conversely, "shareholder" means the holder of a share, which can only mean an equity share in a business. Thus, if you want to be picky, "shareholder" may be the more technically accurate term, since it only refers to company ownership.
Stockholder and Shareholder Rights
The rights of a stockholder or shareholder are the same, which are to vote for directors, be issued dividends, and be issued a share of any residual assets upon liquidation of a company. There is also a right to sell any shares owned, but this assumes the presence of a buyer, which can be difficult when the market is minimal or the shares are restricted. Also, a stockholder or shareholder can be either an individual or a business entity, such as another corporation or a trust.
The term shareholder strictly refers to the owner of shares in the company, meaning equity stakes.The term stockholder refers to someone who owns stock in the company, which can sometimes get interpreted as inventory rather than equity. As a result, shareholder may represent the more technical term for this entity.
What is the difference between stakeholders and shareholders? Stakeholder = any person or organisation with a direct interest in the activities and performance of a business. Shareholder = owners of the business and as a result are entitled to have a share in the profits.
A shareholder is someone who owns stock in your company, while a stakeholder is someone who is impacted by (or has a “stake” in) a project you're working on. Learn about the key differences between shareholders and stakeholders, plus why it's important to consider the needs of all stakeholders when you make decisions.
On this page you'll find 8 synonyms, antonyms, and words related to stockholder, such as: banker, lender, shareholder, venture capitalist, backer, and capitalist.
A stockholder is someone who has shares in a company. Stockholders own a piece of that company. If you're a stockholder in the latest, greatest, financially sound new start-up company, your stock is probably worth a lot of money! Stockholders are people who hold stocks — in other words, own shares — in a corporation.
A shareholder is a person or institution that has invested money in a corporation in exchange for a “share” of the ownership. That ownership is represented by common or preferred shares issued by the company and held (i.e., owned) by the shareholder.
Shareholders are also sometimes called a company's owners because the profits of the company are shared with them. Corporate shareholders do not take part in managing the daily operations of the company, but they do sometimes have voting rights.
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