shareholder

Vocabulary Word

Definition

A 'shareholder' is an individual or institution that owns shares or stock in a corporation. They are essentially part owners of the company and may have voting rights on business decisions.

Examples in Different Contexts

Shareholders have a vested interest in the performance of a company because they can benefit from dividends and stock price appreciation. A CEO might say, 'We are committed to delivering value to our shareholders.'

Practice Scenarios

Accounts

Scenario:

We've done well this fiscal year, and we have some investment returns to distribute. Let's discuss the best way to allocate these funds.

Response:

The shareholders should receive a decent portion of the investment returns, following a sound allocation strategy.

Business

Scenario:

The board is considering a significant major strategic adjustment. How do we think the shareholders would respond?

Response:

We should communicate and take feedback from our shareholders before making any strategic adjustments.