A Shareholder is an individual or institution that owns shares in a company, representing a claim on part of the company's assets and earnings. Shareholders can be classified as either common or preferred, with common shareholders typically having voting rights in corporate decisions, while preferred shareholders have a higher claim on assets and dividends. Shareholders play a crucial role in corporate governance and can influence company policies through their voting power. They benefit from the company's growth and profitability, as their shares may increase in value and yield dividends. Understanding the rights and responsibilities of shareholders is essential for anyone involved in investing or corporate management.