The difference between a stockholder and a shareholder
/The terms stockholder and shareholder both refer to the owner of shares in a company, which means that they are part-owners of a business. Thus, both terms mean the same thing, and you can use either one when referring to company ownership.
To delve into the underlying meaning of the terms, "stockholder" technically means the holder of stock, which can be construed as inventory, rather than shares. Conversely, "shareholder" means the holder of a share, which can only mean an equity share in a business. Thus, if you want to be picky, "shareholder" may be the more technically accurate term, since it only refers to company ownership.
Stockholder and Shareholder Rights
The rights of a stockholder or shareholder are the same, which are to vote for directors, be issued dividends, and be issued a share of any residual assets upon liquidation of a company. There is also a right to sell any shares owned, but this assumes the presence of a buyer, which can be difficult when the market is minimal or the shares are restricted. Also, a stockholder or shareholder can be either an individual or a business entity, such as another corporation or a trust.
Stockholder and Shareholder Liquidity
As a stockholder (or shareholder), it can be difficult for you to gain liquidity through the sale of your shares. This is because most shares have been issued by private companies; in order to sell them, they must be registered with the Securities and Exchange Commission, which is an expensive and time-consuming process. The best other option for the sale of these shares is for the issuer to be acquired, in which case the buyer will offer either cash or its own stock in exchange for your shares in the acquiree.