Legal Definitions - shareholder

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.