What is a shareholder?

    shareholder or stockholder is a trader or investor that legally owns a share of stock in a private or public company. The traders and investors might be individuals, but also financial institutions or companies.

    One purpose of shareholders is to provide capital to companies, e.g. during an IPO.

    Stockholders are granted special privileges depending on the class of stock, such as selling the shares, nominating and voting on the directors of the company or the right to dividends if they are declared.

    Also see:

    Stockholders or shareholders are considered by some to be a subset of stakeholders. Stakeholders are typically all people and entities who contribute value to or are impacted by the company. They include workers, suppliers, customers and the local community.