Shareholder - GCSE Business Definition

What is a Shareholder?

A shareholder is an individual, company, or institution that owns at least one share in a company, making them a partial owner. With this share, shareholders have the potential to influence company decisions through voting rights, often in proportion to the number of shares they own.

In addition to having a say in major business choices, shareholders may also receive a portion of the company's profits in the form of dividends.

For GCSE Business students, understanding the role of shareholders is crucial, as they play a vital part in the governance and financial structure of a company, impacting both its operations and strategic direction.