Shareholder
Also called: stockholder
A person or institution that owns one or more shares in a company, and so is a part-owner of it.
Shareholders own the company together, in proportion to the shares they hold. They are entitled to vote on major matters, to receive any dividends the board declares, and to receive the company's published reports.
Shareholders are the last to be paid if a company is wound up: lenders and other creditors come first. Thanks to limited liability, a shareholder cannot lose more than they paid for their shares.
Learn more in these lessons
- What is a share?What does owning a share actually mean?
- What is the stock market?What is the stock market and how does it work?
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