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Shareholder

A shareholder is an individual, company, or institution that owns at least one share of a company’s stock. As partial owners, shareholders have a claim to a portion of the company's assets and earnings, as well as voting rights on corporate matters, such as electing the board of directors. Shareholders can be classified as common or preferred, with different rights and privileges depending on the type of shares they hold.

Example

If you own 500 shares of a company’s stock, you are considered a shareholder and are entitled to dividends and voting rights in the company.

Key points

• An owner of shares in a company.

• Entitled to profits, usually through dividends, and voting rights.

• Shareholders can be common or preferred with varying privileges.

Quick Answers to Curious Questions

Shareholders can vote on major corporate matters, including the election of the board of directors.

They benefit from dividends, potential capital gains, and the ability to vote on corporate decisions.

The more shares a shareholder owns, the greater their voting power and influence over corporate decisions.

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