A shareholder is an individual or entity that owns shares in a company. By purchasing shares, they gain a stake in the company's ownership and may benefit from its profits through dividends or an increase in share value. Shareholders can be private investors, institutional investors, or even employees of the company. Shareholders typically have voting rights, allowing them to influence company decisions, such as electing the board of directors. Their interests are often aligned with the company's performance, as a successful business can lead to higher share prices and greater returns on their investment.