Shareholders Definition

A shareholder is an individual or institution that owns shares in a company. Shareholders are typically motivated by the prospect of earning dividends, as well as potentially seeing the value of their shares increase over time.

While all shareholders are technically owners of a company, the term is most often used to refer to those who hold common stock. Common stockholders have voting rights and may be eligible to receive dividends, although they typically have less control over the company than those who hold preferred stock.