A shareholder is an individual or institution that owns shares in a company's stock. Shareholders are part owners of the company and may receive dividends and capital gains, and they typically have voting rights on major decisions.

Shareholders can be retail investors or institutional investors such as pension funds and mutual funds. They elect the board of directors and vote on issues such as mergers and executive compensation. Their interests are central to corporate governance and shareholder activism.

Key points

• Owner of shares in a company
• May receive dividends and voting rights
• Can be retail or institutional
• Central to corporate governance