Which term is another name for the owners of a company whose shares can be held by individuals or other organizations?

Which term is another name for the owners of a company whose shares can be held by individuals or other organizations?

• A. Stockholders (Shareholders)
• B. Shareholder concept
• C. Stakeholders
• D. Special interest group (SIG)

Answer: (A)

Ownership in a company is held through shares. The people or organizations that own those shares are called shareholders, also known as stockholders. They are the owners because holding shares gives them a claim on profits and, in most cases, voting rights at the company’s meetings. Stakeholders, by contrast, include anyone affected by the company—employees, customers, suppliers, communities—whether or not they own any shares. The term “shareholder concept” refers more to the idea or theory about ownership and the duties of managers to owners, rather than naming the owners themselves. A special interest group is a type of advocacy group, not a term for owners. So the best term for the owners who can be individuals or organizations holding shares is stockholders (shareholders).

Ownership in a company is held through shares. The people or organizations that own those shares are called shareholders, also known as stockholders. They are the owners because holding shares gives them a claim on profits and, in most cases, voting rights at the company’s meetings.

Stakeholders, by contrast, include anyone affected by the company—employees, customers, suppliers, communities—whether or not they own any shares. The term “shareholder concept” refers more to the idea or theory about ownership and the duties of managers to owners, rather than naming the owners themselves. A special interest group is a type of advocacy group, not a term for owners.

So the best term for the owners who can be individuals or organizations holding shares is stockholders (shareholders).