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Stockholders Meaning: Definition, Examples, and Translations

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stockholders

[หˆstษ’khษ™สŠldษ™z ]

Definition

Context #1 | Noun

business

Individuals or entities that own shares in a corporation. Stockholders have the right to vote on company decisions and may receive dividends if the corporation is profitable.

Synonyms

equity holders, investors, shareholders.

Which Synonym Should You Choose?

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Word Description / Examples
stockholders

Financial contexts, specifically when referring to individuals or entities that own shares in a company. Often used in formal documents and discussions about company ownership.

  • The company's stockholders were pleased with the quarterly earnings report.
  • At the annual meeting, the board presented their strategic plan to the stockholders.
shareholders

Commonly used in everyday language and financial news to refer to people or entities that own shares in a company.

  • Shareholders will receive dividends at the end of the fiscal year.
  • The company's management team held a conference call to address shareholder concerns.
investors

Broader term that includes anyone who invests money in various kinds of financial instruments, including stocks, bonds, real estate, etc. Used in a general financial or investment context.

  • Investors are betting on the company's strong growth prospects.
  • The market rally encouraged many investors to increase their holdings.
equity holders

Used in more technical or legal financial contexts to refer broadly to people or entities owning equity in a company, which includes common and preferred shares.

  • The rights of equity holders are protected under the company's bylaws.
  • Equity holders were concerned about the potential dilution of their shares in the proposed merger.

Examples of usage

  • Stockholders voted to elect the board of directors.
  • The company distributed dividends to its stockholders.
  • Large institutional investors are major stockholders in the corporation.

Translations

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

Interesting Facts

Economics

  • Stockholders are essential for companies because they provide capital, helping businesses grow and innovate.
  • There are different types of stockholders, including common stockholders who typically have voting rights and preferred stockholders who receive dividends first.

Corporate Governance

  • Stockholders have the right to attend annual meetings, where they can vote on crucial company decisions and board members.
  • Activist stockholders often push for changes within a company to improve profits by influencing management decisions.

Pop Culture

  • Films like 'The Big Short' illustrate the power stockholders can wield, especially during financial crises.
  • Television shows like 'Billions' often portray the competitive and strategic maneuvers of hedge fund managers who represent stockholders.

Legal Implications

  • Stockholders can take legal action against a company if it does not act in the best interest of its shareholders.
  • Laws regulate how stockholders can vote and influence decisions, ensuring a balance of power within corporate structures.

Origin of 'stockholders'

Main points about word origin

  • The term 'stockholder' comes from the word 'stock,' which originally referred to livestock or resources owned by someone.
  • In the 16th century, 'stock' evolved to encompass financial shares in a company, and thus 'stockholder' emerged to describe owners of shares.

The term 'stockholder' originated in the early 19th century, combining 'stock' meaning ownership in a company and 'holder' referring to one who possesses something. Stockholders play a crucial role in corporate governance and have rights and responsibilities outlined by law and company bylaws.