• Entry
  • Reader's guide
  • Entries A-Z
  • Subject index

Shareholders

Shareholders (or stockholders) are individuals or institutions (including corporations and mutual funds) that legally own shares of stock in a public or private corporation. These shares represent part ownership of the company and confer a number of rights on the shareholder, depending on the type of stock. For ordinary shares (common stock), these rights may include the right to sell shares, the right to vote on the directors nominated by the board, the right to nominate directors and propose shareholder resolutions, the right to dividends if declared, the right to purchase new shares issued by the company, and the right to assets remaining after firm liquidation. Other types of shares, including preference shares and convertible securities, carry different entitlements for their holders. For example, although ...

    • Loading...
    locked icon

    Sign in to access this content

    Get a 30 day FREE TRIAL

    • Watch videos from a variety of sources bringing classroom topics to life
    • Read modern, diverse business cases
    • Explore hundreds of books and reference titles