stockholder
Quick Summary
A stockholder, also known as a shareholder, is an individual or institution that holds shares of stock in a corporation. These shares represent an ownership stake, or equity, in the company. Stockholders have certain rights, typically including the right to share in dividends (distributions of a company's earnings) and to vote on corporate matters, such as the election of directors.123
There are two main types of stock:
* Common stock: This type of stock carries residual ownership, meaning holders have a claim on earnings and assets after all other claims are paid. Common stockholders usually have voting rights and their dividends can fluctuate with company earnings.2
* Preferred stock: This stock has a prior claim to dividends, which are often paid at a fixed rate, and to assets in case of dissolution. Preferred stockholders typically do not have voting rights unless certain conditions are met.32
The market price of common stock can fluctuate significantly based on investor expectations of future earnings.2
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