What is a Stockholder?

A stockholder, also known as a shareholder, is an individual or entity that owns shares of a company's stock. Stockholders are the true owners of a company and have a claim on a portion of its assets and profits. They have the right to vote on certain matters related to the company, such as the election of the board of directors, and may receive dividends if the company declares them.

Stockholders can be institutional investors, such as pension funds or mutual funds, or individual investors who purchase shares through a brokerage firm. The number of shares owned by each stockholder is typically recorded on the company's books and is used to determine their ownership percentage and voting power.

It is important for companies to communicate with their stockholders regularly to keep them informed about the company's financial performance, strategy, and other important matters. This can be done through annual meetings, quarterly earnings reports, and other forms of communication such as email or online portals.