What is a stockholder?
A stockholder (or shareholder) is the legal owner of one or more shares of a corporation’s capital stock. Stockholders hold an equity interest in the company entitling them — depending on the class of stock — to voting rights, dividends, residual rights on liquidation, and pre-emptive rights to participate in future stock issuances.
Stockholder rights are defined by the corporation’s charter and by-laws, applicable state corporate law (Delaware General Corporation Law in most U.S. startups), and any stockholders’ agreement. Common stock and preferred stock confer different rights, with preferred stock typically holding liquidation preferences and protective provisions.