shareholder

shareholder — noun

1. An individual or organization that has bought shares issued by a business, givin

1.nounB2
Definition

An individual or organization that has bought shares issued by a business, giving them the right to a portion of its profits and a vote on important company decisions.

Example

The company's shareholders voted to accept the offer from a larger firm.

vote to accept/reject [proposal]

Yasmin became a shareholder in a small tech company after saving up for two years.

Common collocations
  • major shareholder
  • minority shareholder
  • institutional shareholder
  • individual shareholder
  • shareholder meeting
  • shareholder vote
  • shareholder value
  • shareholder rights
Synonyms
  • stockholder

    Exactly the same meaning; used primarily in American English

  • investor

    Broader — covers anyone who puts money in to make a profit, not limited to share purchases

  • stakeholder

    Much broader — includes employees, customers, suppliers, and the local community, not just owners

Usage Note

Frequently modified by adjectives that indicate the size or type of ownership: 'major shareholder' (owns a large percentage), 'minority shareholder' (owns a small percentage), 'institutional shareholder' (an organization such as a pension fund). Distinguish from 'stakeholder,' which includes anyone affected by a company (employees, community) — not just owners.

Common Mistakes

I am a shareholder of my phone.
I am a shareholder of the company.
You can only be a shareholder of a business or corporation, not a physical object.
Every customer is a shareholder of the store.
Customers are stakeholders in the store.
A customer does not own shares; 'stakeholder' refers to anyone affected by the business.

Word family

  • share
    nounA2
  • share
    verbB1
  • stockholder
    nounB2
  • shareholding
    nounC1

Synonym discussion

Sense: noun/1

While 'shareholder' and 'stockholder' mean the same thing — a person who owns shares in a company — 'stockholder' is used almost exclusively in American English. 'Investor' has a broader meaning: it covers anyone who puts money into something with the hope of making a profit, including bondholders, real estate buyers, or cryptocurrency traders, not just share owners. 'Stakeholder' is broader still, referring to anyone affected by a company's actions, such as employees, local communities, or suppliers. For example, a factory's shareholders want higher profits, but the local community as a stakeholder may want cleaner air, even if it costs the company money.

stockholderinvestor ↗stakeholder

Common collocations

Nouns

  • shareholder meeting
  • shareholder vote
  • shareholder value
  • shareholder rights
  • shareholder approval

Phrases

  • major shareholder
  • minority shareholder
  • institutional shareholder
  • individual shareholder
  • majority shareholder

Prepositions

  • shareholder in [company/business]

Etymology

Old EnglishEnglish

The word 'shareholder' combines 'share' (from Old English 'scearu,' meaning a portion or division) and 'holder' (someone who holds or possesses something). The term became widely used in the 19th century as joint-stock companies became the dominant form of business organization, especially after laws were passed to protect the rights of people who bought shares in these companies.