Stockholder Definition and Legal Meaning

On this page, you'll find the legal definition and meaning of Stockholder, written in plain English, along with examples of how it is used.

What is Stockholder?

(n) Stockholder is the person holding definite number of shares in a body corporate which has been converted in to a stock where by he can deal them as a tradable goods.

History and Meaning of Stockholder

A stockholder is an individual or entity which owns shares of a particular company's stock. The concept of stock ownership can be traced back to the early years of corporations, in which individuals would invest capital into a company in order to fund its business operations. In exchange for their investment, these individuals would receive shares or partial ownership in the company. Today, stock ownership remains a common way for individuals and entities to invest in companies and receive a financial return on their investment through dividends or the increased value of the company's stock.

Examples of Stockholder

  1. John is a stockholder in XYZ Corporation, owning 100 shares of their stock.
  2. The board of directors at ABC Corporation held a meeting to discuss the concerns of their stockholders.
  3. Mary's retirement portfolio is diversified among various stockholdings in different companies.
  4. Behavioral economists argue that stockholders often make irrational decisions based on emotions rather than facts.
  5. The stockholders of Google voted to approve the company's acquisition of a smaller tech startup.

Legal Terms Similar to Stockholder

  • Shareholder: A term often used interchangeably with stockholder, referring to an individual or entity which owns shares of a company's stock.
  • Equity Owner: A general term referring to an individual or entity which has ownership in a corporation.
  • Beneficial Owner: An individual or entity that enjoys the benefits of owning a security or property without actually holding legal title to it.
  • Investor: A person or entity that commits capital with the expectation of financial return.
  • Limited Partner: An investor with limited liability in a partnership but who does not participate in its management.