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Person or entity that owns shares or equity in a corporation.


The person or company that owns a share in a publicly-traded company or a mutual fund. The share represents a certain (usually very small) percentage of ownership in the company or the securities underlying the fund. Thus, a stockholder has the right to receive a portion of the company's profits in the form of dividends, and, depending on the type of share, may have a right to vote on matters pertaining to corporate governance. A person or company becomes a stockholder on the record date, that is, on the date that the share was bought. A stockholder is also known as a shareholder.



If you own stock in a corporation, you are a shareholder of that corporation.

You're considered a majority shareholder if you alone or in combination with other shareholders own more than half the company's outstanding shares, which allows you to control the outcome of a corporate vote. Otherwise, you are considered a minority shareholder.

In practice, however, it is possible to gain control by owning less than 51% of the shares, especially if there are a large number of shareholders or you own shares that carry extra voting power.


An individual or entity that owns shares of capital stock.
References in periodicals archive ?
This treatment is necessary because the deferred tax and interest charge of a section 1291 fund is not preserved when the upper-tier shareholder is a non-PFIC or a QEF.
These changes are not only more flexible as to the total number of shareholders, which benefits banks considering S status, they are also more flexible as to the movement of shares between family members, which benefits shareholders directly.
Avoid the Double Level of Taxation to a C Corp By Having Part of the Purchase Price Paid to the Selling Shareholders as Compensation or as Payment for a Covenant Not to Compete.
Increasingly," Bowie adds, "companies are beginning to implement shareholder proposals, especially when they address today's hot issues, such as de-classifying (electing them annually) staggered boards; eliminating 'poison pills' or agreeing to put them to a shareholder vote; expensing stock options and allowing shareholders to vote on golden parachutes that exceed three times an executive's compensation.
In the above example the shareholder recognizes $20 ordinary income from operations and either $4 of capital gain or ordinary income, depending on the nature of the debt.
In Monsanto's case, shareholders worry that GM organisms and banned pesticide exports enhance vulnerability to lawsuits and negative publicity.
Further, McKinnell argued, offering shareholder access to the company proxy might prevent boards from appointing candidates with a desired expertise.
The total sum is very small, thus KO is far from deploying the resources available to shareholder crusaders like the former bureaucrat Yoshiaki Murakami, whose company, M&A Consulting, has a fund to acquire positions in companies that are failing to put shareholder interests first (see sidebar on page 42).
367(b)-3, in the case of shareholders whose stock in the foreign acquired corporation, i.