SHAIR-hohl-der
/ˈʃeəˌhəʊl.də/
nounB1TOEFLIELTSGMAT
FormalBusinessFinancial
An owner of stock or equity shares in a commercial enterprise.
Refers specifically to equity owners, distinct from broader corporate stakeholders.
The story behind the word. A compound term created during the emergence of joint-stock companies in 17th-century Britain, where investors held paper documents showing their share of trade voyages.
Word relationships
- stockholder: Stockholder is an exact synonym used widely in US business, while shareholder is common internationally.
- bondholder: A bondholder is a lender owing corporate debt, whereas a shareholder owns equity shares.
Commonly confused with
- stakeholder: A stakeholder has an interest in company operations (employees, neighbors), while a shareholder holds actual equity.
Word family
- share (noun): A unit of corporate stock ownership.
Collocations
- shareholder value
- shareholder vote
- majority shareholder
Example sentences
- "The shareholder base voted to approve the merger agreement during the annual general meeting." Annual voting
- "Corporate executives must maximize long-term shareholder value while adhering to statutory regulations." Executive leadership
Memory hook
A SHARE-HOLDER HOLDS a SHARE of corporate equity. Owner of company equity.
When not to use
Do not confuse with 'stakeholder', which includes non-owners affected by company actions.
Fun facts
- The Dutch East India Company issued the world's first tradeable corporate shares to shareholders in 1602.
