Definition

An individual or institution that owns shares in a company, giving them a stake in the company’s profits and decisions.

What to consider

  • Understand that betting on a decline can be very risky.
  • Set clear exit strategies to limit potential losses.
  • Monitor market conditions closely before shorting a stock.

Real world scenarios

  • When Jessica bought shares in a well-known company, she became a shareholder and received invitations to vote on corporate matters.

Related terms

Investments & Retirement