Who are the owners of a corporation referred to as?

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The owners of a corporation are referred to as stockholders. This term specifically designates individuals or entities that hold shares (or stock) in the corporation, representing partial ownership. Being a stockholder allows these individuals to claim a portion of the corporation's assets and earnings, as they have invested capital into the company. Stockholders have the right to vote on certain corporate matters, including electing the board of directors and approving major corporate changes.

While the terms shareholders and stockholders can be used interchangeably in many contexts, the term stockholder emphasizes the ownership aspect more distinctly. Therefore, identifying stockholders as the owners underscores their financial stake and intrinsic rights within the corporate structure, distinguishing them from officers and directors, who are responsible for managing the corporation and making operational decisions but do not necessarily own shares in the company.

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