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A stockholder, also referred to as a shareholder, is a person, company, or institution that owns at least one share of a company's stocks, known as equity. Any person who has free capital and wants to invest it in the business can become a stockholder.

A stockholder is very similar to an investor who invests capital on a long or short-term basis to profit. Still, the stockholder is more interested in the company's efficient work, bringing him a stable, long-term income, when the investor puts his funds to get a one-time profit and withdraws capital immediately after reaching the goal.

Shareholders who own less than 50% of a company's stocks are known as 'minority shareholders,' whereas shareholders who own 50% or more of a company's stock are called 'majority shareholders.'


2020-09-24 • Updated

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