Definition - What does Shareholder mean?

A shareholder is a person who is a legal owner of a least one share of stock in a company. Stocks can be purchased on a number of different stock exchanges. Members of companies are oftentimes issued shares of stock as well. Shareholders have certain rights within the corporation, including the right to dividends if they are available, and the right to vote on a board of directors.

Justipedia explains Shareholder

Buying a share of stock is essentially like becoming a part owner of the company. However, major corporations commonly have millions or hundreds of millions of shares. So a shareholder with only a few stocks has a very tiny percentage of ownership in the company. But, this ownership is still legally binding. Shareholders profit from increases in stock prices, or dividends being paid by the company. Shareholders can also sell their shares if they would like to relinquish their percentage of ownership in the company.

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