A stockholder, also known as a shareholder, is an individual or entity that owns shares in a company. By purchasing these shares, stockholders gain partial ownership of the company and may benefit from its profits through dividends or increased share value. Their investment can influence the company's decisions, especially if they hold a significant number of shares. Stockholders have the right to vote on important company matters, such as electing the board of directors or approving major changes. Their interests are often aligned with the company's performance, as higher profits can lead to higher stock prices and dividends, benefiting both the stockholder and the company.