What is a shareholder in the context of business?

A shareholder, in the context of business, is fundamentally a financial investor who holds shares in a company. This investment provides the shareholder with certain rights, primarily the ability to participate in the company's governance through voting on key issues such as board elections, mergers, and other significant corporate actions. Shareholders may also benefit financially through dividends and appreciation of their share value.

The emphasis on the role of a financial investor with trading rights highlights that shareholders are typically involved in buying and selling shares, making them stakeholders in the company’s financial performance without necessarily being involved in its daily operations. This distinction clarifies that shareholders can influence management decisions through their voting rights, even if they are not employees or directly engaged in the company's operations. This aspect is crucial as it delineates the shareholder from other roles, such as employees or partners, who may not have the same level of financial interest or trading rights in a company's structure.