Can't figure out if I should use "shareholder" or "stakeholder" in a sentence. Can anyone help? 🤔
2023-06-26
This is what goPenpal answered
Sure, I'd be happy to assist!🙂 The distinction rests on the role someone plays in a company. A "shareholder" is someone who owns part of the company by holding shares of stock. They're invested directly and their primary concern is usually the financial performance of the company.
Conversely, a "stakeholder" is a broader term that includes anyone who has an interest or stake in the company. This could be employees, customers, suppliers, local communities, and indeed shareholders. They may be influenced by, or can influence, the company’s actions, objectives and policies. So while all shareholders are stakeholders, not all stakeholders are necessarily shareholders.
Now, when you use either word in a sentence, it'll depend on the context. If you're discussing someone who merely invests in the company, "shareholder" would be more appropriate. But if you're talking about someone or a group that interacts with the company in any way beyond just owning its shares, "stakeholder" would be more fitting.
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