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A stockholder, or shareholder, is an individual or organization owning stock in a company. Ownership is symbolized by a stock certificate or noted within their broker's records. A stockholder can also be an organizations such as a mutual fund, hedge fund, and pension fund. A stockholder holds a legal claim to a percentage of a company's assets and earnings. A stockholder also shares in the company's limited liability status.
Beyond voting for a Board of Directors, a stockholder has little input on company management unless they own a large number of shares. A large stockholder is required to register their positions with the SEC, and to file when their holdings change. A stockholder who is also an insider is required to file with the SEC anytime they wish to buy or sell stock.
Stocks are subordinate to bonds; when companies go bankrupt, each stockholder generally lose the entire value of their holdings. |
