Shareholder

business · ownership · money · companies

Owning a slice. When you buy shares in a company, you own a small part of that company. If a company is like a pizza cut into 1,000 slices and you own 10 slices, you are a shareholder with 10 shares.

Public or private. Both big public companies (like ones you see in stores) and smaller private companies have shareholders. Public company shares can be bought and sold by anyone, while private company shares are usually owned by fewer people.

Money and decisions. When a company makes a profit, shareholders sometimes get a piece of that money called a dividend. Shareholders with enough shares also get to vote on big company decisions.

Legal owners. Shareholders are the real legal owners of a company, even if a CEO runs the day-to-day business. The company keeps a list of all registered shareholders and how many shares each one owns.

Members of companies. Shareholders are sometimes called members of a corporation. This word reminds us that they are part of something bigger, kind of like how you might be a member of a club or team.