A shareholder is a person, business entity or institution that owns at least one share in a corporation.
Shareholders are the actual owners of the corporation. As an owner, the shareholder has the
potential to profit if the corporation is doing well but also has the potential to lose their investment if
the corporation goes broke. A shareholder is not personally liable for the debts and obligations of the
corporation. If a corporation goes broke (worst case) the shareholder may get little or nothing as an
equity holder in the corporation. Other secured creditors such as banks and bond holders would be
paid first in the event of the liquidation of the assets of the corporation.
