Stockholders

Stockholders, also known as shareholders, are individuals or institutions that own shares in a corporation. Ownership represents an equity stake and is evidenced by stock certificates or electronic records. The size of a stockholder's stake is proportional to the number of shares owned, and ownership can be substantial or minor depending on holdings.

There are two principal classes of stock: common stock and preferred stock. Common stockholders typically have voting rights on corporate matters, such as electing the board of directors, and may receive dividends. Preferred stockholders generally have priority over dividends and assets in liquidation but often have limited or no voting rights. The exact rights are defined in the charter and the terms of issue.

Stockholders participate in governance by electing the board, who oversee management. Major corporate actions, such as mergers or changes to the charter, may require stockholder approval. Shareholders may vote at annual or special meetings and may vote by proxy. Stock ownership also carries the risk of loss if the company performs poorly, but liability is usually limited to the amount invested. Shares are typically transferable, providing liquidity through markets or private sales. Large or concentrated holdings can influence corporate strategy.