Question: What is the difference between an investor and a shareholder?
Answer:A shareholder owns stock or shares in a corporation that issues shares either through a private or public company. A person or entity becomes a shareholder by buying a share or an ownership interest in the company. This means that shareholders can vote on issues affecting the company, as they are financially bound to the company’s successes (a share represents an interest in a company’s profits and losses).
An investor can be a shareholder in a business, but may also lend money to a business.
