Principal Stockholder

Stockholder who owns a significant number of shares in a corporation. Under Securities and Exchange Commission (SEC) rules, a principal stockholder owns 10% or more of the voting stock of a Registered Company. These stockholders are often on the board of directors and are considered insiders by SEC rules, so that they must report buying and selling transactions in the company's stock. See also Affiliated Person; Control Stock; Insider.

Stockholder who owns a significant number of shares in a corporation. Under Securities and Exchange Commission (SEC) rules, a principal stockholder owns 10% or more of the voting stock of a Registered Company.