Shareholder Meaning: Definition, Examples, and Translations

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shareholder

[ˈʃɛːrˌhoʊldər ]

Definition

^{Context #1 | Noun}

business

A person, company, or institution that owns shares in a company and therefore has a financial interest in its success.

Synonyms

investor, stakeholder, stockholder.

Which Synonym Should You Choose?

Word	Description / Examples
shareholder	Use when referring to someone who owns shares in a company, typically implying both rights and responsibilities towards the company. The company held its annual meeting for all shareholders. As a shareholder, she has the right to vote on company decisions.
stockholder	Synonymous with shareholder, commonly used in American English to describe someone who owns shares in a company. The company issued a dividend to its stockholders. Stockholders are optimistic about the company's future performance.
investor	Appropriate when talking about an individual or entity that invests money in various assets, including but not limited to companies, with the expectation of earning a return. The investor decided to diversify his portfolio by buying real estate and stocks. Startups often pitch their ideas to potential investors.
stakeholder	Use when referring to anyone who has an interest or concern in a business or project, including employees, customers, suppliers, and shareholders. All stakeholders were invited to discuss the new company policy. It's important to consider the impact on all stakeholders when making decisions.

Examples of usage

The shareholders of the company voted to approve the merger.
As a shareholder, you have the right to vote on important company decisions.

Translations

To see the translation, please select a language from the options available.

Interesting Facts

Business

Shareholders attend annual meetings to vote on key issues, such as electing board members.
They can influence the company’s direction through voting rights tied to the number of shares they own.
The value of an investment in a company is typically tied to its performance based on profit and growth potential.

Law

Shareholders have certain legal rights, including owning a portion of profits through dividends.
Protection laws exist to guard the rights of shareholders, ensuring companies operate fairly.
In the event of bankruptcy, shareholders are among the last to be paid, ranking below creditors and employees.

Cultural Impact

Shareholder activism has become a significant force in corporate governance, with individuals pushing for ethical practices.
Pop culture often portrays businesses' struggles through the lens of shareholders' reactions to crises or changes.
Films and literature sometimes depict shareholders as important players in the drama of business success or failure.

Finance

The performance of a company’s stock often reflects shareholder confidence and can impact investment trends.
In some regions, shareholders can receive tax benefits based on their investments, influencing financial decisions.
Dividends, which are portions of profits returned to shareholders, can provide a significant source of income for investors.

Origin of 'shareholder'

Main points about word origin

The term 'shareholder' combines 'share' (a portion of a business) and 'holder' (someone who owns something).
The word has its roots in financial markets dating back to the late 19th century as companies began to issue stocks.
Originally, the concept emerged during the period of the joint-stock company, allowing multiple investors to fund ventures.

The term 'shareholder' originated in the mid-18th century, combining the words 'share' and 'holder'. It became widely used during the industrial revolution as companies started offering ownership in the form of shares to raise capital. Shareholders play a crucial role in corporate governance by electing the board of directors and voting on major company decisions.