What is Shareholder?
Shareholder: A person or firm that owns shares in a company.
Where Shareholder fits
Shareholder is part of Owners & Shares in Finance. Owners hold shares and earn through dividends. Limited liability caps their loss at what they invested, and stock options reward staff with ownership.
Practical tip
Decide whether you want growth (reinvest) or income (dividends).
Related terms
- Dividend
- A share of profit paid out to shareholders.
- Stock options
- The right to buy company shares at a fixed price, used as a perk.
- Limited liability
- Owners risk only what they invested, not personal assets.
- Stock split
- Dividing shares into more shares, lowering each price without changing total value.
Formulas you will use with it
Test yourself
Which term means: “A person or firm that owns shares in a company.”?
Shareholder · Stock split · Dividend
Answer: Shareholder
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