What it is
A shareholder or stockholder is a person, company, or organization that owns shares of a company. This means they’re a part-owner of that company and may benefit from its growth.
Additionally, those who invest in mutual funds are also called shareholders.
What it means for you
You’ll become a shareholder if you invest in stocks or mutual funds. This means that there are rights and benefits you may enjoy, like the right to vote on company matters.
You may also receive a portion of a company’s earnings if that company chooses to issue dividends.
Another way to possibly earn money as a stockholder is through capital appreciation. This is when you make a profit when you buy shares low then sell them high.
There are different types of shares, like common and preferred shares. The types you own may determine the rights you’ll enjoy as a shareholder.
