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Dictionary / Stock basics

What Is a Shareholder?

A shareholder is anyone who owns at least one share of a company. Owning one share of Apple makes you an Apple shareholder, with the same basic rights as a big fund.

What rights do shareholders have?

How shareholders make money

In two ways: the share price goes up, or the company pays out cash. Companies can also do a stock buyback, which leaves each remaining shareholder owning a bigger slice.

Shareholder vs stakeholder

Shareholders own the company. Stakeholders are everyone affected by it: staff, customers, suppliers and the local community. Good companies care about both.

Do shareholders own the company's stuff?

Not directly. You cannot walk into an Apple Store and take a phone. You own a slice of the company, and the company owns the stores and phones.

See it in real companies

Open a company to see what it sells and how it makes money.

Related terms

StockA small piece of a company you can own. Common stockThe normal kind of share most people own. DividendCash a company pays its owners. Stock buybackWhen a company buys its own shares. Earnings reportA company's report card, every three months. PortfolioEverything you have invested, together.

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