13:47
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LSDefine
Simple English definitions for legal terms
shareholder
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A quick definition of shareholder:
A shareholder is someone who owns a part of a company by owning stock. It's like owning a piece of a puzzle that makes up the whole picture of the company. There are two types of stock: common stock and preferred stock.
A more thorough explanation:
A shareholder is someone who owns a part of a company. This means they have bought stock in the company and are now a part owner. There are two types of stock: common stock and preferred stock.
- John owns 100 shares of Apple stock. He is a shareholder of Apple.
- Samantha bought 50 shares of Coca-Cola stock. She is now a shareholder of Coca-Cola.
These examples illustrate the definition of a shareholder because both John and Samantha have bought stock in a company, making them part owners of that company. As shareholders, they have a say in how the company is run and can vote on important decisions.