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Simple English definitions for legal terms
shareowner
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A quick definition of shareowner:
A shareowner, also known as a shareholder, is someone who owns a part of a company. This means they have a share or shares in the company, which can give them certain rights, such as voting on important decisions. There are different types of shareholders, such as controlling shareholders who have a lot of power in the company, and minority shareholders who have less power. Sometimes, there are also dummy shareholders who own shares on behalf of someone else.
A more thorough explanation:
A shareowner, also known as a shareholder, is a person or entity that owns or holds a share or shares in a company, particularly a corporation. This means that they have invested in the company and own a portion of it.
For example, if someone owns 100 shares of stock in a company that has a total of 1000 shares outstanding, they are a shareowner with a 10% ownership stake in the company.
There are different types of shareowners, including:
- Controlling shareholder: A shareholder who owns enough shares to influence the corporation's activities.
- Dummy shareholder: A shareholder who owns stock in name only for the benefit of the true owner, whose identity is usually concealed.
- Majority shareholder: A shareholder who owns or controls more than half of the corporation's stock.
- Minority shareholder: A shareholder who owns less than half of the total shares outstanding and cannot control the corporation's management or elect directors on their own.
These examples illustrate how shareowners can have different levels of influence and control over a company based on the number of shares they own.