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Difference Between Shareholders and Stakeholders

Shareholders vs Stakeholders

In every company there are stakeholders and shareholders. These investors both have interests in the company. Whatever happens to the company, they will be affected by it. That is why it is important for them to help maintain or, even better, develop the company so that their investments will be worth every single penny.

A shareholder is someone who has a financial share in the company. A shareholder is someone who owns stocks in a company. This means shareholders are somehow part owners of the company. They will be able to earn profits if the company will grow, develop, and earn more through the company’s production.

A stakeholder, on the other hand, is someone who has an interest in the company; this may be a financial interest or another kind of interest. Examples of stakeholders are employees and staff. Shareholders can also be stakeholders because they have interest in the company in the financial aspect.

To have a deeper understanding on the differences between a shareholder and a stakeholder, it is best to define them first.

Shareholders are common people who have actually given money to a company to be part owner of the company. The shareholders can buy stocks or a portion of the company through the share market. Companies need shareholders to be able to raise capital for the company. The shareholders will profit from the company depending on the production and how much the company will earn. In addition, because they have a share in the company, they are the biggest stakeholders of the company. This is because whatever happens to the company, the shareholders will be affected by it directly. If the company profits, the shareholders will profit too through dividends and bonuses. If the company suffers a loss, the shareholders will too.

The stakeholder, on the other hand, has interest in a company. This interest may be direct or indirect. If a person is affected by whatever happens to a company, whether good or bad, he or she is a stakeholder. Employees, their families, customers, and suppliers are some of the examples of stakeholders. Shareholders are stakeholders too because they are directly affected by whatever happens to the company. Other organizations also only have stakeholders and no shareholders. An example for this is a university. Universities have no shares, but it has many stakeholders. Its stakeholders include students, teachers, administrators, and even janitors.

SUMMARY:

1.Shareholders have financial shares in the company while stakeholders have interest in the company financial or not.

2.Shareholders can be stakeholders, but stakeholders are not shareholders.

3.Shareholders are directly affected by whatever happens to the company while stakeholders are directly or indirectly affected by whatever happens to a company.

4.The stakeholders have a big influence on what will happen to a company while shareholders will only be affected.

5.Shareholders own a part of the company, but not all stakeholders do.


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1 Comment

  1. Shareholders have financial abilities to share in the company which stakeholders can have interest in it.

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