Also found in: Dictionary, Thesaurus, Medical, Legal, Acronyms, Encyclopedia, Wikipedia.


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 ?
In Letter Ruling 200546027, (16) an S corporation could have been deemed to have a second class of stock due to its distributions to shareholders and the terms of shareholder agreements.
A shareholder may receive back an installment obligation for a corporation's asset sale, in complete corporate liquidation under Sec.
Shareholders run into problems when they have reduced or depleted their debt basis and the corporation repays any part of a shareholder loan.
Shareholder resolutions in most cases request a tangible strategy for dealing with environmental problems.
On top of the momentum it gained from the SEC report, the push for shareholder democracy received a boost in late August from former SEC Chairman Richard Breeden.
Although he failed to win, the court criticized shareholder meetings that were mostly staged and controlled by loud employees, warning that: "If a corporation arranges rehearsals for the meeting in order to expedite proceedings with shouting, such a shareholder meeting might be invalid.
Aside from the normal section 367(b) notice requirements, a small shareholder must also satisfy section 1.
In the event that during the Extraordinary General Shareholders' Meeting alternative proposals are presented on the business included on the Agenda and they are submitted to voting, the proxyholder shall exercise the vote in the sense he deems most favorable to the interest of the grantor shareholder.
In addition, the company's Shareholder had to file an amended return to include the additional dividend in income and pay the additional tax due.
Managements of companies that have had a major layoff or [that have] seen their stock price drop sharply--a fairly large universe now--need to think hard about what they will say to shareholders at this year's annual meeting," says John Wilcox, vice chairman of Georgeson Shareholder Communications in New York.
The shareholder, who treats the fair market value of the property as received in exchange for his or her stock, also recognizes a gain (IRC section 331(a)).