Equity Investing
Shareholder
Definition
What is Shareholder?
A person or entity that owns one or more shares in a company.
Example in practice
How This Looks in Practice
A shareholder with 2% of the company owns a proportional economic interestThe right to participate financially in profits, distributions, or changes in an asset's value..
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Related Terms
Equity Investing
Common Stock
A share that usually carries voting rights and a residual claim on a company's profits and assets.
Equity InvestingOrdinary Share
The standard ownership share in a company, generally equivalent to common stock.
Equity InvestingPreferred Stock
A class of share that usually has priority over ordinary shares for dividends and liquidation proceeds.
Equity Capital MarketsInitial Public Offering
The first public sale of a private company's shares, after which the shares may trade on an exchange.