stockholder

In the USA, term for the owner of part of the stock capital of a corporation. Stockholders own stock in order to make a return. They do this partly by receiving a share of the profit made by the corporation, and partly by seeing the price of their stock rise over time if the value of the corporation increases. A loss-making corporation is likely to see its stock fall in price.

Ultimately, if a corporation goes bankrupt, the stockholders have limited liability (that is, they are not liable for all the company's debts, though they may lose their investment in the stock). As the owners, stockholders have the right to elect directors, vote on major corporate actions (such as mergers), and share in the profits. They do not have the right to direct the day-to-day operations.