Meaning & Definition of word "Shareholder"

Shareholder

/ˈʃɛrˌhoʊldər/

1. An individual or institution that owns shares in a corporation or mutual fund.
- Example: As a shareholder, she received a yearly report detailing the company's financial performance.
2. A person or entity that has a stake in a company, typically through owning voting rights associated with the shares.
- Example: The shareholder voted in favor of the proposed merger during the annual meeting.
3. One who invests capital in a company with the expectation of receiving dividends and capital gains.
- Example: The shareholder was pleased when the company announced an increase in dividends.
4. A participant in a business who has rights to a portion of the profits based on the shares owned.
- Example: Being a major shareholder, he had significant influence over corporate decisions.
5. An owner of shares in an investment trust or similar entity, typically with no direct control over day-to-day operations.
- Example: The shareholders in the mutual fund were notified of the changes in investment strategy.

●The word 'shareholder' is derived from the combination of 'share', referring to a stake in a company, and 'holder', indicating possession.

major shareholder:

An individual or entity that owns a significant percentage of a company's shares.

minor shareholder:

A person who owns a smaller amount of shares compared to major shareholders.

large shareholder:

A type of shareholder who owns a substantial portion of a company's shares.

stake:

A financial interest in a business or investment.

equity:

The value of ownership interest in a company, often represented by shares.

dividend:

A portion of a company's earnings distributed to shareholders.

Meaning: shareholder activist

● Example Sentence: He's a shareholder activist who pushes for changes in management policies.

Meaning: retail investor

● Example Sentence: Many retail investors act as shareholders in publicly traded companies.