A shareholder is a person or entity that owns shares in a company.
For example, a business owner who holds 75% of the corporation's voting shares is the majority shareholder, allowing her to control major strategic decisions. When the company secures bank financing, the bank may require the majority shareholder to provide a personal guarantee.
Why it matters: They are the ultimate owners; management's primary fiduciary duty is to maximize the long-term value for shareholders.
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