Stockholder vs Stakeholder: Difference and Comparison

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. 

Key Takeaways

  1. Stockholder owns shares in a company while Stakeholder has an interest in the success of a company.
  2. Stockholder focuses mainly on the financial benefits, while Stakeholder focuses on the overall success and impact of the company.
  3. Stockholder’s role is limited to investing in the company, while Stakeholder’s role extends beyond investing to include other aspects like corporate social responsibility.

Stockholder vs Stakeholder 

The 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.  

Stockholder vs Stakeholder

Stockholders are individuals, firms, or institutions that 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, 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 through their actions or policies. Every Stockholder is a Stakeholder.

However, not every Stakeholder is a Stockholder. 

Comparison Table

Parameters of Comparison  Stockholder  Stakeholder 
 Status  Stockholders buy and own stocks of a company or respective organization.   Stakeholders are 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 invest money in a company or organization to buy and own shares and stocks of that company.

Also Read:  Mindfulness vs Awareness: Difference and Comparison

Owning of stocks by Stockholders may result in them becoming owners of that business. This, however, 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 in 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.  

stockholder

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 through 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, and 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.   

stakeholder

Main Differences Between Stockholders and Stakeholders 

  1. Stockholders are individuals, firms, or institutions that invest money in a company or organization to buy and own shares and stocks of that company, whereas Stakeholders are employees, shareholders, and bondholders interested in an organization and are affected by the actions or policies taken by that organization.  
  2. 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.  
  3. 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.  
  4. 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, and shareholders.  
  5. 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.  
  6. In terms of business, every Stockholder is a Stakeholder, whereas not all Stakeholders are Stockholders. 
Difference Between Stockholder and Stakeholder
References
  1. https://onlinelibrary.wiley.com/doi/abs/10.1111/basr.12083 
  2. https://link.springer.com/article/10.1023/A:1024794710899 
Also Read:  Markup vs Margin: Difference and Comparison

Last Updated : 25 July, 2023

dot 1
One request?

I’ve put so much effort writing this blog post to provide value to you. It’ll be very helpful for me, if you consider sharing it on social media or with your friends/family. SHARING IS ♥️

24 thoughts on “Stockholder vs Stakeholder: Difference and Comparison”

  1. The comparison table is very useful in highlighting the differences between Stockholders and Stakeholders. It’s important to recognize the distinctions between the two.

    Reply
  2. The article effectively addresses the differences between Stockholders and Stakeholders through a clear and insightful analysis. It’s an enlightening read.

    Reply
    • I couldn’t agree more. The distinctions between Stockholders and Stakeholders are articulated with precision and clarity.

      Reply
  3. This article offers an excellent comparison of Stockholders and Stakeholders, shedding light on their respective roles and significance in the business environment. A well-crafted piece.

    Reply
  4. The article effectively distinguishes between Stockholders and Stakeholders, offering a thorough and insightful discussion. A valuable resource for understanding these concepts.

    Reply
    • The comprehensive explanation of Stockholders and Stakeholders in this article serves as a valuable educational resource for anyone interested in business.

      Reply
  5. Understanding the roles and responsibilities of Stockholders and Stakeholders is critical, and this article does an excellent job of explaining the key differences.

    Reply
  6. The article provides an in-depth and insightful comparison between Stockholders and Stakeholders, offering invaluable perspectives on these business roles and responsibilities.

    Reply
    • The nuanced analysis and comparisons presented in the article are essential for anyone seeking to understand the critical differences between Stockholders and Stakeholders.

      Reply
    • Indeed, the article’s focus on the distinctions between Stockholders and Stakeholders is highly informative and beneficial for its readers.

      Reply
  7. Thank you for the detailed explanation of Stockholders and Stakeholders! It’s important to understand the differences between the two.

    Reply
  8. The article provides a well-structured and informative analysis of Stockholders and Stakeholders. It’s clear and concise.

    Reply
  9. The detailed insights provided in this article significantly contribute to a deeper understanding of Stockholders and Stakeholders. Well-written and informative.

    Reply
  10. The article’s detailed explanation and comparison of Stockholders and Stakeholders have enhanced my understanding of these concepts. It’s a valuable resource for anyone in business.

    Reply

Leave a Comment

Want to save this article for later? Click the heart in the bottom right corner to save to your own articles box!