Glossary: Shareholder

Shareholder

Shareholder or Stockholder - A shareholder is the owner of one or more shares of stock in a for-profit corporation. A shareholder who owns shares of voting stock has the right to vote in Board of Directors' elections and in certain other corporate decisions, in proportion to the shareholder's percentage of the shares of voting stock of the corporation. In fact, your shareholders have the authority to decide any corporate transaction or issue except for those matters about which the Articles of Incorporation or state law says otherwise. A shareholder also has a right to receive a dividend when one has been declared. In many start-up private corporations, the same person is a shareholder, director and one or more officers of the corporation.

Disclaimer: The foregoing is intended to provide general information and may not be suitable in specific instances. The glossary information is not intended to be exhaustive, but rather to illustrate typical considerations. The material is provided with the understanding that it is not legal, accounting, tax or any other professional advice.

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