Stockholder Meaning and Definition

Meaning of stockholder: Delve into the meaning and definition of stockholder on our page. Explore what stockholder truly means and discover its profound significance in the human experience. What does stockholder mean to you?

A stockholder is an individual or entity that owns shares or stock in a corporation. By owning stock, the stockholder becomes a part-owner of the company and has a claim on its assets and earnings. Stockholders are entitled to vote on important company decisions, such as electing the board of directors, and they may also receive dividends if the company distributes profits. Stockholders can be classified into different categories based on the type of stock they own, such as common stockholders or preferred stockholders. Common stockholders typically have voting rights and share in the company's profits through dividends, while preferred stockholders often have a fixed dividend that must be paid before any dividends are distributed to common stockholders. Overall, stockholders play a crucial role in the governance and financial performance of a corporation.