Which statement is true about stockholders and corporate ownership?

• A. Stockholders are owners of a corporation who hold shares of stock
• B. Officers are owners
• C. Directors are owners
• D. The state is owner

Answer: (A)

In a corporation, ownership comes from holding stock. Stockholders are the owners because each share represents a claim to part of the company’s equity and earnings. This ownership grants rights like voting for the board of directors and receiving dividends, but it doesn’t automatically put someone in charge of daily operations. Managers who run the company—officers and directors—may or may not own stock; ownership hinges on actually holding shares, not simply occupying a management role. The state would only be the owner in a rare, government-owned enterprise, which is not how typical private corporations operate. So the true statement is that stockholders are owners of a corporation who hold shares of stock.