The terms ‘Stockholder’ and ‘Stakeholder’ are both business terms and are commonly used in the business world. They are both mistaken for each other and are used interchangeably at times. Although they are similar in some ways, they differ from each other in many ways.
Stockholder vs Stakeholder
The main difference between a Stockholder and a Stakeholder is that in terms of business, every Stockholder is a Stakeholder. However, not every Stakeholder is a Stockholder. Stockholders can also transfer their interests by simply selling their stocks. On the other hand, Stakeholders tend to hold longer relationships with the company, like the employees.
Stockholders are individuals, firms, or institutions that usually invest money in a company or organization to buy and own shares and stocks of that company. Owning of stocks by Stockholders may result in them becoming owners of that business. This, however, usually depends on the percentage of stocks owned by them.
Stakeholders are individuals, firms, or institutions interested in an organization and are affected by the actions or policies taken by that organization. In contrast with this, Stakeholders can also affect the organization or company by their actions or policies. Every Stockholder is a Stakeholder. However, not every Stakeholder is a Stockholder.
Comparison Table Between Stockholder and Stakeholder
| Parameters of Comparison | Stockholder | Stakeholder |
| Status | Stockholders buy and own stocks of a company or respective organization. | Stakeholders are usually employees, bondholders, suppliers, customers. |
| Relationship | They can also become owners of a business depending on the percentage of stocks they own. | They have a long relationship and interest in an organization. They are affected by the actions of that organization. |
| Authority | Stockholders can exert a controlling interest over an organization or company. | Stakeholders exert a longer relationship with the company. They are affected by the actions of that organization. |
| Scope of Relationship | Stockholders have the option of selling their stocks. They can transfer their interests to an organization by simply selling these stocks. | Stakeholders tend to hold longer relationships with the company, like the employees, bondholders, shareholders. |
| Type | In terms of business, every Stockholder is a Stakeholder. | In terms of business, not every Stakeholder is a Stockholder. |
| Benefits | Stockholders earn capital depending on the value of the stocks they invest in the market. | Stakeholders have economic benefits depending on their position or influence in the respective company or organization. |
What is Stockholder?
Stockholders are individuals, firms, or institutions that usually invest money in a company or organization to buy and own shares and stocks of that company. Owning of stocks by Stockholders may result in them becoming owners of that business. This, however, usually depends on the percentage of stocks owned by them.
Stockholders have the option of selling their stocks. They can transfer their interests to an organization by simply selling these stocks. They can exert a controlling interest over an organization or company.
Stockholders earn capital depending on the value of the stocks they invest in the market. In terms of business, every Stockholder is a Stakeholder.
What is Stakeholder?
Stakeholders are individuals, firms, or institutions interested in an organization and are affected by the actions or policies taken by that organization. In contrast with this, Stakeholders can also affect the organization or company by their actions or policies. Stakeholders are mainly the employees, bondholders, shareholders, or even stockholders, in a company.
Stakeholders tend to hold longer relationships with the company, like the employees, bondholders, shareholders. They exert a longer relationship with the company and are affected by the actions of that organization.
Stakeholders have economic benefits depending on their position or influence in the respective company or organization. In terms of business, not every Stakeholder is a Stockholder.
Main Differences Between Stockholders and Stakeholders
- Stockholders are individuals, firms, or institutions that usually invest money in a company or organization to buy and own shares and stocks of that company, whereas Stakeholders are employees, shareholders, bondholders interested in an organization and are affected by the actions or policies taken by that organization.
- Stockholders can also become owners of a business depending on the percentage of stocks they own, whereas, Stakeholders have a longer relationship with their organization and are affected by the actions of their respective companies.
- Stockholders can exert a controlling interest over an organization or company, whereas Stakeholders exert a longer relationship with the company and are affected by the actions of that organization.
- Stockholders have the option of selling their stocks. They can transfer their interests to an organization by simply selling these stocks, whereas Stakeholders tend to hold longer relationships with the company, like the employees, bondholders, shareholders.
- Stockholders earn capital depending on the value of the stocks they invest in, in the market, whereas, Stakeholders have economic benefits depending on their position or influence in the respective company or organization.
- In terms of business, every Stockholder is a Stakeholder, whereas not all Stakeholders are Stockholders.
Conclusion
The terms ‘Stockholder’ and ‘Stakeholder’ are both business terms and are commonly used in the business world. They are both mistaken for each other and are used interchangeably at times. Although they are similar in some ways, they differ from each other in many ways.
Stockholders are individuals, firms, or institutions that usually invest money in a company or organization to buy and own shares and stocks of that company. Owning of stocks by Stockholders may result in them becoming owners of that business. This, however, usually depends on the percentage of stocks owned by them. Stockholders can also transfer their interests by simply selling their stocks.
Stakeholders, on the other hand, are employees, bondholders, shareholders, stockholders interested in an organization and are affected by the actions or policies taken by that organization. In contrast with this, Stakeholders can also affect the organization or company by their actions or policies. Unlike Stockholders, Stakeholders tend to hold longer relationships with the company.
The main point of difference between a Stockholder and a Stakeholder is in terms of business. Every Stockholder is a Stakeholder. However, not every Stakeholder is a Stockholder.
References
- https://onlinelibrary.wiley.com/doi/abs/10.1111/basr.12083
- https://link.springer.com/article/10.1023/A:1024794710899