What term describes a person who owns shares of a company?

• A. Stockholder
• B. Investor
• C. Executive
• D. Director

Answer: (A)

Owning shares means you have a claim to part of the company’s ownership and profits. The person who owns those shares is called a stockholder (also known as a shareholder). Shares grant ownership rights, such as possible dividends and sometimes voting on major company decisions. An investor is a broader term for someone who puts money into assets, not necessarily owning stock. An executive is someone who runs the company, and a director sits on the board; neither label by itself means you own shares. So the best term for someone who owns shares is stockholder.