Define shareholders

Shareholders are individuals, organizations, or institutions that own shares of stock, or equity, in a company. By owning shares, they become part-owners of the company and have a claim on its assets and earnings. Shareholders may also have the right to vote on important company matters, such as the election of the board of directors or major business decisions. Their ultimate goal is to earn a return on their investment through dividends, share price appreciation, or both. Shareholders can include both private and institutional investors.