Shareholder

A shareholder, sometimes referred to as a stockholder, is any person or entity that holds ownership in a company through its shares. These shares can be obtained either by purchasing them on the stock exchange or by receiving an allotment directly from the company. Shareholders are part-owners of the business and may benefit from dividends, exercise voting rights at general meetings, and earn returns if the company’s share price increases.

Example: For example, when an investor purchases 1,000 shares of Reliance Industries Ltd., they become a shareholder and gain the right to participate in company decisions and receive dividend payouts.