Who are shareholders?

Shareholders are individuals who own shares of a business. Owning shares represents a claim on the company's assets and earnings, meaning shareholders have a vested interest in the company’s performance and profitability. Their ownership stake can vary; they might hold small amounts of stock or large percentages. Shareholders typically have rights that can include voting on important company matters, receiving dividends, and benefiting from increases in share value.

Understanding the role of shareholders is essential, as they play a crucial role in corporate governance and decision-making processes. Shareholders essentially provide the capital that companies need to operate and grow, directly linking their financial interests to the company’s success.