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Shareholder Meaning

A shareholder is an individual or institution that legally owns at least one "Share" of a company's stock, which represents a portion of ownership in the business. Shareholders are the "Principals" in the "Principal-Agent" problem of corporate governance; they provide the capital and, in return, expect the managers (the agents) to act in their best interest to maximize the company's value.Technically, being a shareholder grants two main rights: Economic Rights (the right to receive dividends and capital gains) and Voting Rights (the right to vote on the board of directors and major company changes).

In the world of fintech, the "Shareholder Register" is traditionally a private, centralized database maintained by a transfer agent. This creates "Friction" and "Costs" whenever shares are traded or dividends are paid.The "Security Token" movement aims to move the shareholder register onto the blockchain.

By representing "Shares" as "Tokens," companies can automate dividend payments (using smart contracts) and allow for "Instant Settlement" of stock trades. This turns the "Passive" shareholder into an "Active" participant in a global, 24/7 digital equity market.

Furthermore, it allows for "Fractional Shares," meaning an investor could own $1 worth of a private startup, a level of access that was previously impossible in traditional private equity.

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Important Disclaimer:

Finery Markets BVI Limited (“Finery Markets”) provides software, technology infrastructure, and related Information and Communication Technology (ICT) services on a Software-as-a-Service (“SaaS”) basis. Finery Markets acts solely as a software vendor and does not operate a trading platform, does not intermediate, match, execute, clear, or settle transactions, and does not engage in any activities that would require regulatory authorisation under applicable laws.

Finery Markets’ software is non-custodial and is provided exclusively to licensed institutional entities that act as independent operators of their own environments. All counterparties are solely responsible for establishing and maintaining their own bilateral trading and settlement relationships. Finery Markets is not a party to any such arrangements and assumes no responsibility for the conduct, verification, or compliance obligations of any users of the software.

Nothing on this website shall be construed as a financial promotion, investment advice, or an offer to engage in regulated activities. Access to and use of the software is strictly limited to clients who have entered into a software licensing agreement with Finery Markets. Persons located in jurisdictions where such access is restricted should not rely on this website or any of its contents.

Additional notice to UK visitors: This website and associated communications are not intended to constitute a financial promotion under The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended) and related guidance. Access to services provided by Finery Markets is limited to regulated entities, professional clients and eligible counterparties as set out by the Financial Conduct Authority. UK users are not permitted to use this website for the services of Finery Markets if they don't fall within these categories.