Shareholders, also known as stockholders, are individuals or entities that own shares of stock in a company. When a company issues stock, the people who purchase those shares become its shareholders.
Shareholders are considered the owners of a company and are entitled to a portion of the company’s profits and assets. The number of shares a shareholder owns determines their ownership stake in the company and their level of control over its decisions.
Shareholders have certain rights and privileges, including the right to vote on important company matters, such as the election of directors and the approval of major corporate actions. They also have the right to receive dividends, which are distributions of the company’s profits to its shareholders.
Shareholders are also subject to certain risks and responsibilities. For example, if a company goes bankrupt, its shareholders may lose their entire investment. Additionally, shareholders can be held liable for the company’s actions in certain circumstances, such as if the company engages in illegal activities.
Being a shareholder in a company can be a profitable and rewarding experience, but it also comes with certain risks and responsibilities.
