Who is a shareholder in a company?

A shareholder is a person, company, or institution that owns at least one share of a company’s stock or a share of a mutual fund. Shareholders essentially own the company, which comes with the right to share in the profits. If a company is successful, shareholders benefit from increased stock valuations or profits distributed as dividends.

Who owns a share in a company?

Definition and types A Shareholder, also known as a Stockholder, is a person, corporation, institution, or government that owns at least one share in a company. This includes both companies listed on a stock exchange and unlisted ones. By possessing stocks, a shareholder owns a percentage of that company.

Are shareholders always shareholders?

Shareholders are always stakeholders in a corporation, but stakeholders are not always shareholders. Shareholders own part of a public company through shares of stock; a stakeholder wants to see the company prosper for reasons other than stock performance.