Shareholder

A shareholder is an individual or institution that owns shares in a corporation, having a claim on a portion of the company's assets and earnings. Shareholders can influence company management through voting rights associated with their shares and may receive dividends if the company performs well. Their investment classifies them as either common or preferred shareholders, based on the type of shares they own. Shareholders are essential to raise capital for companies to fund operations and growth.

Shareholder meaning with examples

• As a longstanding shareholder in the tech company, Sarah was delighted to see the stock prices soar after the successful launch of their new product. She felt a renewed sense of pride in her investment decision, which she'd nurtured over the years, carefully analyzing each quarterly report to track its progress.
• During the annual general meeting, the shareholders were presented with the company's financial results. Many expressed their concerns regarding the increase in operational costs and demanded a thorough explanation from the management on how these expenses affected the dividend payouts anticipated for the upcoming quarter.
• Tom decided to become a shareholder in a renewable energy firm, impressed by their mission and growth prospects. He believed that investing in sustainable businesses not only benefitted his portfolio but also aligned with his values toward contributing positively to the environment and future generations.
• After purchasing shares in the company during its initial public offering, Lisa felt the responsibility of being a shareholder. She regularly attended stockholder meetings and communicated with other investors to discuss strategies, ensuring her voice was heard in crucial decisions that impacted their collective investment.