When you buy a company’s stock, you are basically buying a portion of that company. You are a part owner, and the technical term for that is “shareholder.” It’s important to do your research and purchase stock in a company that you believe in. Does the company have a good product? Has the company been around for many years? How has the stock done in the past? What is in the future for this company? These questions can help determine whether or not a company is a good investment. Some companies offer their shareholders dividends. A dividend is an amount of money that a company pays its shareholders from its profits. Some companies pay dividends on a regular basis, but it depends on the company.

What is a shareholder?

A
someone who owns stock in a company

B
someone who researches investments

C
someone who diversifies their investments

D
someone who sets the value of a company’s stock