A typical corporate form of business organization is owned by its shareholders.

Shareholders are individuals or entities that legally own one or more shares of stock in the corporation. 

They have the potential to profit if the company does well, but that comes with the potential to lose if the company does poorly.

Despite owning a portion of the company’s stock, a shareholder has limited liability, meaning they are not personally liable for the company’s debts.

Shareholders influence the corporation by electing the Board of Directors and voting on corporate policy.