Which term describes investors who own stock in a corporation?

• A. Shareholders
• B. Stakeholders
• C. Firms
• D. Economy

Answer: (A)

Owning stock in a corporation means you hold an equity stake in that company, so you’re an owner of the company’s shares. The correct term for these investors is shareholders. Shareholders have ownership rights tied to the stock they own, such as voting on corporate matters and receiving a portion of profits through dividends.

The broader term, stakeholders, includes anyone affected by the company’s actions—employees, customers, suppliers, and the community—not just those who own stock. The company itself is referred to as the firm, which is the entity rather than the people who own its shares. The economy is the entire system of production and exchange, much larger than any single company or its owners.