definition of shareholder

At the end of the business cycle of a company, after all debts have been paid, money remains (hopefully...). This money, the free cash flow, is for the shareholder or shareholders.


"The shareholders always get paid last".


The free cash flow is the amount of money that is left after all creditors are paid within the appropriate period.
The definition of Shareholder:
he value of the company (firm) minus the Future claims (debts). The value of the company can be calculated as the Net Present Value of all future cashflows plus the value of the nonoperating assets of he company.