In corporate finance, who typically owns a corporation?

The ownership of a corporation typically lies with the stockholders, who are individuals or entities that hold shares in the corporation. When people purchase shares of a company's stock, they essentially buy a piece of ownership in that corporation. This ownership provides stockholders with certain rights, such as the ability to vote on major corporate actions, receive dividends, and benefit from any increase in the company's value.

In a corporate structure, stockholders are the ultimate decision-makers regarding key issues, as they elect the board of directors, which then manages the corporation's overall direction and policies. This relationship establishes a clear distinction between ownership (stockholders) and management (executives and employees), emphasizing that stockholders have vested interests in the corporation’s performance and its governance.

Employees and managers are crucial to the company's operations and success, but they do not own the corporation unless they also hold shares. Customers, while essential for the corporation's revenue, do not have any ownership rights in the business. This structure is foundational in understanding corporate governance and the responsibilities of different stakeholders in a business setting.