Stockholders

Stockholders, also known as shareholders, are individuals or entities that own shares in a company. They possess a financial stake in the corporation and are entitled to certain rights, including the potential for dividends and voting power on company matters, proportional to their share ownership. The degree of control and benefits received by a stockholder is determined by the type and number of shares they hold. stockholders can be institutions, such as pension funds, mutual funds, or corporations, or individual people. They influence company direction through the election of the board of directors. They are the ultimate owners of the company.

Stockholders meaning with examples

• The company announced record profits, much to the delight of its stockholders, who anticipated a significant dividend payment. Institutional stockholders, such as BlackRock, hold a substantial portion of the company's shares, granting them considerable influence on key decisions made by the board.
• During the annual general meeting, stockholders voted on several proposals, including the election of new directors and the approval of executive compensation packages. The majority of stockholders supported the company's sustainability initiatives, highlighting the increasing emphasis on socially responsible investing.
• After the merger, the stockholders of both companies were given shares in the new entity. Disgruntled stockholders filed a lawsuit against the management, alleging financial misconduct and misrepresentation of the company's performance. The management team focused on boosting the confidence of major stockholders by showing a viable plan.
• The company's stock price plummeted, alarming many stockholders and prompting calls for a change in leadership. Long-term stockholders tend to weather market fluctuations, while short-term investors might be more inclined to sell during periods of uncertainty. The board is accountable for their decisions to the stockholders.
• Potential investors often carefully review the company's annual reports, financial statements, and management's discussion and analysis before deciding to become stockholders. The company initiated a share buyback program, which aimed to increase earnings per share and benefit existing stockholders. The stockholders were very pleased with the returns of their initial investments.