Wall Street Words word of the day = Shareholder
Hello YouTube, Todd Ault here, and Welcome to Wall Street Words! Today's Wall Street term is "Shareholder"
Shareholder is exactly what it sounds like. You own shares in a particular company. In order to be a Shareholder, you have to have at least one share. Some people used to give out certificates to Shareholders. Let's say Disney, for example, they wanted their kids to have a share of Disney and Disney used to have the characters on the Shareholder Certificate. So, Disney used to have a lot of one-lot Shareholders where they buy one share of Disney. They'd order out their certificate and they'd give it to their kids. Right, put it on the wall. But, the most important thing to understand is that being a Shareholder means you're an owner of a business. Now, if you own more than 50 percent of that, logically, you're considered to be the majority Shareholder. If you own less than 50 percent, you're considered to be a minority Shareholder. Back to a previous definition, depending on the class of securities you own, you could be a minority Shareholder, but with majority vote. Being a Shareholder is an important part of the economy, important part of the world, and really a big thing about wealth creation. Owning shares is important in the capitalist society is part of how we finance businesses. Years ago, when railroads were starting to issue a lot of shares to Shareholders to raise capital to build those very expensive railroads. They've done this recently, over the last 10 years, Elon Musk has been issuing shares and raising money from private investors in SpaceX with the hope that they'll go public someday. Today's word is Shareholder, an important part of the U.S. economy, the global economy and you're probably a Shareholder in something you don't even know about today in your 401k, your IRA. Shareholders are an important part and the owners of corporate America.
Definition - Also referred to as a stockholder, is a person, company, or institution that owns at least one share of a company’s stock, which is known as equity. Because shareholders are essentially owners in a company, they reap the benefits of a business’ success. These rewards come in the form of increased stock valuations, or as financial profits distributed as dividends. Conversely, when a company loses money, the share price invariably drops, which can cause shareholders to lose money, or suffer declines in their portfolios’ values. A single shareholder who owns and controls more than 50% of a company's outstanding shares is known as a majority shareholder, while those who hold less than 50% of a company’s stock are classified as minority shareholders.
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