Startup Terms Glossary
What are Stockholders?
A stockholder, also referred to as a shareholder, is a person or entity that owns shares in a company’s equity. Stockholders exchange an investment in exchange for partial ownership in a company as a whole. A stockholder is not considered a part of a corporation and as a result have limited liability in regard to a company’s obligations. Stockholders make money in one of two ways: by being paid dividends on a company’s profits or by selling their stock at a higher price than it was purchased at.
Stockholders Examples
Examples of stockholders:
- Example 1. Preferred stockholders
- Example 2. Common stockholders
Here’s another web page about stockholders.
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