Tag: Shareholders

A shareholder (or stockholder) is an individual, corporation, or institution that legally owns one or more shares of stock in a public or private company, representing fractional ownership of that business. As equity holders, shareholders are entitled to specific rights—such as voting on key corporate matters and election of the board of directors—and potential financial benefits, including dividend payouts and capital appreciation as the company grows. In exchange for this potential return, shareholders face equity risk, though their risk is capped at their total invested capital due to limited liability protection, meaning they are not personally liable for the corporation’s debts.