Investing term

What is Shareholder?

Anyone who owns a share. The company communicates corporate actions to you because of this.

A shareholder is anyone who owns shares in a company, and therefore owns a proportional slice of its profits and assets. Ownership comes with rights — to dividends, to vote on certain matters, and to participate in corporate actions — and the company communicates with you precisely because you're on its register. Owning a stock makes you a part-owner of a real business, not just a ticker.

For example

Own one share of a company and you're a shareholder — entitled to your tiny portion of its dividends and a vote at the annual meeting.

Shareholder is taught hands-on in Stage 8 — Corporate Actions: What Lands in Your Account.

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Related terms

AcquisitionOne company buys another. The bought company's shares are converted to cash, acquirer stock, or a mix at the closing price.Carve-outA parent company sells part of a subsidiary in an IPO, keeping a stake.Corporate actionAny event initiated by a company that changes its securities or distributes value to holders.Cost basisWhat you originally paid for a holding, used to calculate gains and losses when you eventually sell.
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