Stakeholder vs Shareholder
The difference between stakeholders vs shareholders is a tricky one. All shareholders are stakeholders, but not all stakeholders are shareholders. If you can remember that, you're halfway there.
A shareholder is any person who owns shares of a company's stock. Shareholders are limited to corporations, because they're the only businesses which can be traded publicly. A shareholder must own shares of stock to qualify, but it doesn't matter if they've purchased the stock or been given it as an incentive or part of their pay. As long as they own shares of stock in a company, they're a shareholder.
Use shareholder in a sentence
“ After the private equity firm became the largest shareholder of the software company, they sought to elect three of their executives to the company's board of directors. ”
“ You need to know that what you are doing will not upset a shareholder and make them want to let go of what they have. ”
“ Executives must make decisions based on not only what is best for the company but also based on the wishes of the shareholders. ”