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Meaning and scope

Accountancy

Diff between stakeholders and shareholders

Prasanth kumar Kamisetty

CA Inter

★ 12K+

09-Jul-20 09:05

317

Answers (1)

Shareholders are always stakeholders in a corporation, but stakeholders are not always shareholders. A shareholder owns part of a public company through shares of stock (eg: equity share holders and preference share holders), while a stakeholder has an interest in the performance of a company for reasons other than stock performance or appreciation (eg: lending banks, debenture holders, deposit holders).