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.

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.

Plainly put, a stakeholder is any person who relies on a business for profit or employment.

It could be a trucker who is under contract to ship out goods, or an employee who provides services for a paycheck. Anyone with a material interest in a business is a stakeholder, because they're the ones who have something at stake. Stakeholders can also be people who own bonds or have lent material assets to a company. Stakeholders can range from the CEO and Board of Directors to the janitor, or even another company who sells office supplies or provides a service.

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.

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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.

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Executives must make decisions based on not only what is best for the company but also based on the wishes of the shareholders.

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