What makes you a stockholder?

A shareholder, also referred to as a stockholder, is any person, company, or institution that owns at least one share of a company’s stock. As equity owners, shareholders are subject to capital gains (or losses) and/or dividend payments as residual claimants on a firm’s profits.

How can you find out who owns a stock?

To find out who owns the majority shares of a public company’s stock, use the EDGAR database at SEC.gov (there is a link to it on the SEC’s home page) and search for the company’s proxy statements DEF-14A.

Can anyone be a stockholder?

Anyone who owns shares in a company is called a shareholder or a stockholder of the company. A shareholder can be a person, institution, or another company. If the company does well, the shareholders benefit through appreciation in the value of their shares.

What is the difference between a shareholder and a stockholder?

To delve into the underlying meaning of the terms, “stockholder” technically means the holder of stock, which can be construed as inventory, rather than shares. Conversely, “shareholder” means the holder of a share, which can only mean an equity share in a business.

How does a stockholder make money?

There are two ways to make money from owning shares of stock: dividends and capital appreciation. Dividends are cash distributions of company profits. Capital appreciation is the increase in the share price itself. If you sell a share to someone for $10, and the stock is later worth $11, the shareholder has made $1.

Are shareholders public record?

You can find out the names of the shareholders of a public company through several resources. All companies, foreign and domestic, are required to file registration statements, periodic reports, and other forms electronically through EDGAR. Anyone can access and download this information for free.

How do companies keep track of shareholders?

There are generally three components to good stock record keeping: the stock ledger, the stock certificate and the authorizations necessary for the issuance. The stock ledgerThe stock ledger is a company’s internal bookkeeping of stock issuances, transfers and redemptions.