Shareholder

Someone who owns shares, equity, in a company.

Example

Buying ten shares of a company on an exchange makes you a shareholder of record.

Important

A shareholder owns a slice of the company, not a specific dollar amount - the value of that slice moves with the company's fortunes.

Related terms

• Equity — Ownership in a company or asset - a claim on whatever is left after debts, and on any growth in value.
• Investor — Someone who buys an asset expecting to hold it long enough for the underlying business or asset to create value.

Lessons that explain it

• Equity versus debt — Own a piece of something, or lend it money. The two sit at opposite ends of every risk-and-reward trade in investing. (10 min)

All 578 terms in the Investing glossary