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Principal Shareholder
- A principal shareholder is someone ( an organization or a group
is also possible) who owns 10 percent or more of the outstanding stock
of a company. Outstanding stock is mostly common stock that has been
sold to the shareholders. Shareholders can be individuals, organizations
or groups who own one or more shares of a company. Usually a company
has a group of shareholders, but it is also legal to have just one shareholder.
If a company has one shareholder, technically this shareholder is a
principal shareholder. (as he owns more than 10 percent of the shares.)
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