What is a shareholder (2024)

FAQs

What is a shareholder answers? ›

A shareholder is any person, company, or institution that owns shares in a company's stock. A company shareholder can hold as little as one share. Shareholders will make capital gains (or losses) when selling shares, and may receive dividends if the company pays them.

The dictionary definition of a shareholder, also known as a stockholder, is a person who holds at least one share in a company. They're not the same as a stakeholder though – this is someone who has an interest but doesn't necessarily hold shares.

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. owners of a corporation who elect the board of directors and vote on fundamental changes in the corporation.

The shareholder register serves as proof of ownership in the company, and it shows the number of shareholders in each class of shares. Companies use the shareholder register to keep track of shares held by shareholders and contact them directly instead of going through a custodian bank.

The shareholder is the owner of the company that provides financial security for the company, has control over how the directors manage the company, and also receives a percentage of any profits generated by the company.

Kids Definition

shareholder. noun. share·​hold·​er -ˌhōl-dər. : one that owns or holds a share in property. especially : stockholder.

Shareholders are investors who own a percentage, or shares, of a company. They are entitled to a portion of the company's profits, which they receive through dividends.

Shareholders will get one new bonus share for each share held. The change would need approval by a majority of shareholders. Company owners and shareholders are generally protected from the liabilities of the business. The company held its annual shareholder meeting yesterday.

For example, a person could become a common shareholder of The Allstate Corporation (ALL) by buying at least one common share of the stock. Assume the stock price is $95. The investor buys the number of shares they want, multiplied by $95. They are now a common shareholder.

What does a shareholder want? ›

A shareholder is an individual or organization that owns shares in a corporation or project. The main interest of a shareholder is the profitability of the project or business. In a public corporation, shareholders want the business to earn high revenues so they can get higher share prices and dividends.

Founders, investors and employees can all own shares in a company. However, the Articles of Association or Shareholders Agreement may have its own set of rules on who can become a shareholder. Therefore, the general policy may be overridden by rules the company's Articles has set out.

The difference between shareholders and stockholders is that a shareholder buys shares from the company, and they invest their money in buying those shares, while stockholders buy stocks from a particular company or purchase them from a stock market.

A majority shareholder is a person or entity who holds more than 50% of shares of a company. If the majority shareholder holds voting shares, they dictate the direction of the company through their voting power.

A stockholder is someone that owns shares in a company, while a stakeholder is someone with interest in the success or failure of a company. In other words, a stockholder is an investor in a company, while a stakeholder may or may not hold a financial interest in a company.

A stakeholder is anyone who is impacted by a company or organization's decisions, regardless of whether they have ownership in that company. Shareholders are those who have partial ownership of a company because they have bought stock in it. All shareholders are stakeholders, but not all stakeholders are shareholders.