Shareholder

A shareholder is an individual or entity that owns shares in a company, effectively making them a partial owner. Shares represent a claim on the company’s assets and earnings. When a company performs well, shareholders can benefit from increased share value and dividends, which are payments made from profits. Conversely, if the company struggles, the value of shares can decline. Shareholders typically have voting rights on important company matters, allowing them to influence decisions such as electing board members or approving major changes. In essence, shareholders are invested in the company’s success.