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Write the word/phrase/term which can substitute the following statement: The person who purchases the share of a company. - Book Keeping and Accountancy

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Question

Write the word/phrase/term which can substitute the following statement:

The person who purchases the share of a company.

One Word/Term Answer
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Solution

Shareholder

Explanation:

A Shareholder is a person who purchases or holds shares of a company. By buying shares, the person becomes a part-owner of the company and is entitled to a share of the profits (in the form of dividends) and voting rights in company matters, depending on the type of shares held. Shareholders invest capital into the company and, in return, expect growth in their investment.

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