1. A blockholder refers to an individual or organization which owns a substantial amount of a company's shares or debt.
2. There is not set number of shares to make somebody a blockholder, although the SEC does require any 5% or larger equity owner to file paperwork stating as much.
3. Due to the large number of shares held, blockholders can influence the direction of a company through exercising its voting rights and threats to sell their shares, negatively impacting the price.
1. A blockholder refers to an individual or organization which owns a substantial amount of a company's shares or debt.
2. There is not set number of shares to make somebody a blockholder, although the SEC does require any 5% or larger equity owner to file paperwork stating as much.
3. Due to the large number of shares held, blockholders can influence the direction of a company through exercising its voting rights and threats to sell their shares, negatively impacting the price.