What is the difference between a shareholder and a stakeholder?

A shareholder owns shares in a company. A stakeholder may be affected by the company, but may not own shares.

Is shareholder a formal word?

Yes. It is common in business, finance, and academic writing.

Can one person be a shareholder in a private company?

Yes. A private company can have one or many shareholders.

← Dictionary

shareholder

/ˈʃeəˌhəʊl.də/

IELTSAcademic

noun

A shareholder is a person or company that owns shares in a business. Shareholders may receive part of the company's profits and can often vote on important company matters.

The shareholders approved the new plan.
She became a shareholder after buying company shares.
Major shareholders can influence company decisions.

Adinary Nuance

A shareholder is different from an investor. An investor can put money into many things, but a shareholder owns part of a company through shares. It is also different from a stakeholder, who may be affected by the company but does not necessarily own shares.

In other languages

Vietnamese: cổ đông
Spanish: accionista
Chinese: 股东
Japanese: 株主
Korean: 주주

Etymology

Shareholder entered English in the 1800s, from share + holder. It names someone who holds, or owns, shares in a company.

Common phrases

major shareholderminority shareholdershareholder meetingshareholder value

Synonyms

stockholder equity holder

Frequently asked questions

What is the difference between a shareholder and a stakeholder?: A shareholder owns shares in a company. A stakeholder may be affected by the company, but may not own shares.
Is shareholder a formal word?: Yes. It is common in business, finance, and academic writing.
Can one person be a shareholder in a private company?: Yes. A private company can have one or many shareholders.