Who are shareholders?

Shareholders are defined as investors who purchase shares in a corporation. This means they hold ownership stakes in the company and have the potential to benefit from its profits through dividends and appreciation in share value. By investing in shares, shareholders have a claim on the company's assets and earnings commensurate with their ownership percentage.

Ownership of shares not only grants shareholders financial benefits but also entitles them to a degree of control over the company, including voting rights in certain corporate decisions, depending on the type of shares they own. This critical linkage between shareholders and the performance of the company underlines their importance to corporate governance and decision-making.

In contrast, the other options refer to different roles or sources of financing within a corporate structure. Individuals who own a company's debt are creditors rather than owners, management members run the company but do not necessarily hold ownership, and those providing loans to the company are lenders, not shareholders. Therefore, the correct understanding of shareholders is essential to grasping how corporations operate and the nature of investment in the stock market.