Starting out
Shareholder
Also called Stockholder
Someone who owns shares in a company, and with them a vote and a claim on its profits.
How it works
Ordinary shareholders normally get one vote per share at the annual meeting, on matters such as electing directors and approving pay. In practice most private investors never vote, and the outcome is decided by large institutions.
Where shares are held through a broker’s nominee account, the broker is the registered holder and you are the beneficial owner. Whether your votes are passed through to you depends on the broker.
Related terms
- EquityA share of ownership in a company, giving you a claim on what is left after everyone else is paid.
- Nominee accountAn arrangement where your broker is the registered owner of your shares and you are the beneficial owner.
- Proxy voteVoting on company resolutions without attending the meeting in person.
- DividendA cash payment a company makes to its shareholders out of its profits.
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Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.