A shareholder owns a slice of a company through shares. That stake may bring voting rights, a claim on residual profits via dividends, and exposure to the share price. Limited liability normally means you can lose what you invested in the shares, not your other personal assets, when the company is a limited company.
Key takeaways
- Shareholders are owners, not lenders.
- Rights depend on share class and company documents.
- Dividends are never guaranteed, even for profitable firms.
- Your risk is mainly the amount paid for the shares, subject to local company law.