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2007-03-01 00:17:45 · 5 answers · asked by Amila H 1 in Business & Finance Investing

5 answers

shareholder are "owners", those who own stock in a particular company. stakeholders are wider range, those who have vested interest in success of company-includes shareholders, employees, suppliers, etc

2007-03-01 00:21:55 · answer #1 · answered by jim06744 5 · 0 0

The role of stakeholder is a very old concept in law. A stakeholder was originally a person who temporarily holds money or other property while its owner is being determined. This is, for example, the situation when two persons bet on the outcome of a future event and ask a third, disinterested, neutral person to hold the money (or "stake[s]") that they have wagered (or "staked"). After the event occurs, the stakeholder distributes the stakes to one or both of the original (or other) parties according to the outcome of the event and according to the previously decided conditions. Courts sometimes act as stakeholders, holding property while litigation between the possible owners resolves the issue of which one is entitled to the property. Trustees also often act as stakeholders, holding property until beneficiaries come of age, for example. An "escrow agent" is one kind of trustee who is a stakeholder, usually in a situation where part of the purchase price of property is being held until some condition is satisfied. In legal documents, the escrow agent is often referred to as a "mere stakeholder."

shareholder or stockholder is an individual or company (including a corporation) that legally owns one or more shares of stock in a joint stock company. Companies listed at the stock market strive to enhance shareholder value.

Stockholders are granted special privileges depending on the class of stock, including the right to vote (usually one vote per share owned) on matters such as elections to the board of directors, the right to share in distributions of the company's income, the right to purchase new shares issued by the company, and the right to a company's assets during a liquidation of the company. However, stockholder's rights to a company's assets are subordinate to the rights of the company's creditors. This means that stockholders typically receive nothing if a company is liquidated after bankruptcy (if the company had had enough to pay its creditors, it would not have entered bankruptcy), although a stock may have value after a bankruptcy if there is the possibility that the debts of the company will be restructured.

Stockholders or shareholders are considered by some to be a partial subset of stakeholders, which may include anyone who has a direct or indirect equity interest in the business entity or someone with even a non-pecuniary interest in a non-profit organization. Thus it might be common to call volunteer contributors to an association stakeholders, even though they are not shareholders.

Although directors and officers of a company are bound by fiduciary duties to act in the best interest of the shareholders, the shareholders themselves normally do not have such duties towards each other.

However, in a few unusual cases, some courts have been willing to imply such a duty between shareholders. For example, in California, majority shareholders of closely held corporations have a duty to not destroy the value of the shares held by minority shareholders. See Jones v. H. F. Ahmanson & Co., 1 Cal. 3d 93 (1969) [1].

The largest shareholders (in terms of percentages of companies owned) are often mutual funds, and especially passively managed exchange-traded funds

2007-03-01 08:22:22 · answer #2 · answered by Faye H 6 · 1 0

A share holder has a number of ordinary or a portfolio of shares in a company floated on the stock exchange.A stake holder has a significant number of corporate or major portfolio investment in a company.

2007-03-01 08:24:22 · answer #3 · answered by marzmargs12 6 · 0 1

Shareholder is the person who owns shares in a company whereas Stakeholder is a broader terminology which includes all those who benifit from the existence of the company, like suppliers, lenders, consumers, agents etc; which include the stockholder too.

2007-03-01 11:34:32 · answer #4 · answered by Mathew C 5 · 0 0

One is mercantile, the other is political.

2007-03-01 18:44:57 · answer #5 · answered by Do not trust low score answerers 7 · 0 0

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