Business, Legal & Accounting Glossary
In the USA, individuals, businesses, and groups owning stocks in a corporation.
finance One who owns stock.
US term referring to individuals, business and groups owning stocks in a corporation.
A stockholder is someone, or another entity such as a group of investors or another company, which owns one or more shares of the stock in a corporation. The owners of a corporation are not the company’s management, but rather the stockholders.
A stockholder, or shareholder, is an individual or organization owning stock in a company. Ownership is symbolized by a stock certificate or noted within their broker’s records. A stockholder can also be an organizations such as a mutual fund, hedge fund, and pension fund. A stockholder holds a legal claim to a percentage of a company’s assets and earnings. A stockholder also shares in the company’s limited liability status.
Beyond voting for a Board of Directors, a stockholder has little input on company management unless they own a large number of shares. A large stockholder is required to register their positions with the SEC, and to file when their holdings change. A stockholder who is also an insider is required to file with the SEC anytime they wish to buy or sell stock.
Stocks are subordinate to bonds; when companies go bankrupt, each stockholder generally lose the entire value of their holdings.
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This glossary post was last updated: 6th February, 2020 | 12 Views.