Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail
Investing Answers Building and Protecting Your Wealth through Education Publisher of The Next Banks That Could Fail

Majority Shareholder

What it is:

A majority shareholder refers to a shareholder who owns over 50% of stock in a company.

How it works (Example):

A single shareholder who maintains ownership of more than 50% of a company's outstanding stock qualifies as a majority shareholder. Majority shareholders may be individuals, such as company founders, or other companies that hold more than 50% of shares as part of their balance sheet assets. 

Why it Matters:

A majority shareholder's ownership position provides the shareholder with substantial power over a company.