shareholder

/ˈʃeərˌhoʊldər/
nounIntermediate
💰Finance
formal

An individual or entity that legally owns one or more shares of a company's stock, representing ownership and entitlement to dividends and voting rights.

The company announced a dividend increase to reward its shareholders.

This shows shareholders receiving financial benefits from their investment.

Shareholders voted to approve the merger during the annual general meeting.

This demonstrates shareholders exercising their voting rights.

💡

Shareholders may be individuals, institutional investors, or other corporations.

Collocations

major shareholdera person or entity owning a significant portion of a company's sharesinstitutional shareholdera large organization (e.g., pension fund) that owns shares in a companyshareholder valuethe financial benefit or return expected by shareholders

Synonyms

Antonyms

Related Phrases

shareholder activismphrase
efforts by shareholders to influence corporate policies
shareholder agreementphrase
a contract outlining rights and obligations among shareholders

💡Pro Tip

Voting Rights

Shareholders typically have voting rights proportional to their share ownership, allowing them to influence company decisions.

Gold Rule

Legal Rights

Shareholders have legal rights, including the right to dividends and to inspect company records, depending on jurisdiction.

📖Word Origin

From 'share' (a portion of ownership) + 'holder' (one who possesses). The term emerged in the 17th century with the rise of joint-stock companies.

📝Usage Notes

In legal and financial contexts, 'shareholder' is often used interchangeably with 'stockholder,' though some jurisdictions distinguish between the two.

Word Breakdown

share
a unit of ownership in a company
root
+
holder
one who possesses or owns
root
English Dictionary