Shareowners, also commonly referred to as shareholders or stockholders, are individuals, organizations, or entities that own shares or stocks in a corporation.
In the corporate context, a share represents a fraction or unit of ownership in a company. When an individual or entity purchases shares of a corporation, they become a shareowner, meaning they have a legal and financial interest in the company. Shareowners typically acquire shares through investments made during initial public offerings (IPOs), direct purchases from other shareowners, or participation in employee stock ownership plans (ESOPs) or mutual funds.
As shareowners, individuals can exercise certain rights and privileges, such as voting on important corporate decisions, receiving dividends, and attending the corporation's annual general meetings. Shareowners also have the potential to benefit from the company's success through capital appreciation, as the value of their shares may increase over time.
It is important to note that the extent of power and influence that individual shareowners have will depend on the number of shares they own relative to the total number of shares issued by the corporation. Major shareowners often have more significant voting rights and may even have the ability to influence the direction and decision-making processes of the company.
In summary, specifically in the context of corporations, shareowners are individuals or entities that possess shares of a company and therefore have an ownership stake in the corporation.
The word "shareowners" is a compound word derived from the combination of "share" and "owners".
The term "share" dates back to the 16th century and comes from the Old English word "scearu", meaning a part or division. It is related to the Old High German word "schara", also meaning a portion or division. Over time, "share" evolved to refer specifically to the division of ownership in a company or corporation.
The word "owners" originates from the Old English word "agan", meaning to possess or have. It is related to the Old High German word "eigan", which has a similar meaning. "Owners" indicates individuals or entities that possess or have legal or rightful title to something.
Therefore, when combined, "shareowners" refers to individuals or entities who possess or have legal or rightful title to a share or part of a company or corporation.