Answer to Question #124814 in Accounting for Bright Asamanyuah

Question

Who is a shareholder and who is a stakeholder?

Answer 1

Shareholders and stakeholders:

Shareholders are one of the stake holders of a company but stakeholders are those who not necessarily shareholders of a company they may be related to company in public interest, like government environment department tax authorities etc.

A share holder owns his part of company through share of shares/stock while a stakeholder has an obligation to perform his duty in public interest without having any share/stock.

There are shareholders and stakeholders, when it comes to investing in a corporation. Their investment in a company is quite different, While they have

similar-sounding names.

Stakeholders are not always shareholders in a corporation, but shareholders are always stakeholders. A stakeholder has an interest in the performance of a company for reasons other than stock , while a shareholder owns part of a public company through shares of stock.