How Do You Spell FOREIGN SHAREHOLDER?
Pronunciation: [fˈɒɹən ʃˈe͡əhə͡ʊldə] (IPA) 
Pronunciation: [fˈɒɹən ʃˈe͡əhə͡ʊldə] (IPA)
A foreign shareholder refers to an individual or entity that holds shares in a company or organization, but is not a resident or citizen of the country where the company is based or operates. This term is primarily used in the context of international trade and investment.
A foreign shareholder can be an individual investor, financial institution, or even a foreign government. The shareholding can be in the form of common stock, preferred stock, or any other type of equity investment.
Foreign shareholders often have the same rights and privileges as domestic shareholders, such as voting rights and dividends. However, they may face additional legal and regulatory requirements due to their foreign status. These requirements can differ according to the laws and regulations of the country where the company is located.
Foreign shareholders play a significant role in cross-border investments and can contribute to the growth and diversification of a company's shareholder base. They can bring in new ideas, expertise, and capital from different markets, which can be beneficial for the company's development and expansion.
It is important for companies to understand and comply with the legal and regulatory obligations when dealing with foreign shareholders, as they may need to navigate international tax laws, foreign investment regulations, and exchange control requirements. Maintaining transparent and effective communication with foreign shareholders is crucial to foster trust and goodwill, and to ensure the protection of their rights and interests.
The word "foreign" originated from the Old French word "forain" meaning "outside" or "external". It has its roots in the Latin word "foris", which means "outside" or "beyond". "Shareholder" comes from the combination of "share" and "holder". "Share" is derived from the Old English word "scearu" or "scerian", meaning "portion" or "division". "Holder" comes from the Old English word "haldan", which means "to hold" or "to possess". Therefore, the term "foreign shareholder" refers to a person or entity that holds a portion or division of a company's ownership but is located or originates from outside or external to that country.
