shareholder
n.
owner of a share or shares, stockholder
Shareholder
A shareholder or stockholder is an
individual or
company (including a
corporation) that legally owns one or more
shares of
stock in a
joint stock company. A company's shareholders collectively own that company. Thus, such companies strive to enhance
shareholder value.Stockholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned, but sometimes this is not the case) on matters such as elections to the
board of directors, the right to propose
shareholder resolutions, the right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a
liquidation of the company. However, stockholder's rights to a company's assets are subordinate to the rights of the company's creditors. This means that stockholders typically receive nothing if a company is liquidated after
bankruptcy (if the company had had enough to pay its creditors, it would not have entered bankruptcy), although a stock may have value after a bankruptcy if there is the possibility that the debts of the company will be restructured.
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shareholder
Noun
1. someone who holds shares of stock in a corporation
(synonym) stockholder, shareowner
(hypernym) investor
(hyponym) stockholder of record
Shareholder
(n.)
One who holds or owns a share or shares in a joint fund or property.
Webster's Revised Unabridged Dictionary (1913), edited by Noah Porter.
About
Shareholder
one who owns shares of stock in a corporation or mutual fund. For corporations, along with the ownership comes a right to declared dividends and the right to vote on certain company matters, including the board of directors; also called stockholder.