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The Jolly Contrarian’s Glossary
The snippy guide to financial services lingo.™
The holder for the time being of a share in the equity of a company; a part owner of a corporate enterprise. Usually, shares are issued in registered form (as opposed to bearer form), because it is sort of important to know who — you know — owns the goddamn company. Whereas your creditors, on the other hand — could you really give a fig about them? Well, obviously you could, but as a general category, when you have issued that indebtedness in the form of freely transferable debt securities, it is mainly that fact that someone (other than you) holds them that concerns you, rather than precisely who.
How important the shareholder is — and should be — in the grander scheme of things, is the topic of a JC essay, here.
- ↑ If it does happen to be you, then we should raise a glass, by the way, to whomsoever was the wizard who thought up debt value adjustments, allowing a near-bankrupt bank to book a profit off the discounted price at which it might buy its own paper back in the market, to massage its profit and loss statement in a particularly oily year.