Basic

Shareholder: Definition

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Simple Definition

A person who owns shares in a company. Also called a stockholder.

Why It Matters

The moment you buy even one share, you become a shareholder - a real part-owner of the business. Apple has about 24 million shareholders. As a shareholder, you can vote on major company decisions, receive dividends, and share in the company's success (or failure). It's not just Wall Street insiders; regular people own most of the stock market.

Key Points

  • You get voting rights on big decisions like board members and mergers (1 share = 1 vote)
  • Shareholders are paid LAST if a company goes bankrupt - after employees, bondholders, and creditors
  • Institutional shareholders (like Vanguard and BlackRock) own huge chunks and can influence company policy

Related Terms

Common Questions

A person who owns shares in a company. Also called a stockholder. The moment you buy even one share, you become a shareholder - a real part-owner of the business. Apple has about 24 million shareholders.

The moment you buy even one share, you become a shareholder - a real part-owner of the business. Apple has about 24 million shareholders. As a shareholder, you can vote on major company decisions, receive dividends, and share in the company's success (or failure). It's not just Wall Street insiders; regular people own most of the stock market.

You get voting rights on big decisions like board members and mergers (1 share = 1 vote)

Shareholders are paid LAST if a company goes bankrupt - after employees, bondholders, and creditors

Institutional shareholders (like Vanguard and BlackRock) own huge chunks and can influence company policy