Who owns stock companies?

Stock companies are owned by stockholders, who invest capital in the company and, in return, receive shares of stock. This structure allows stockholders to benefit from the company's profits through dividends and share value appreciation. Unlike mutual companies, where the policyholders are the owners and can participate in management decisions, stock companies are primarily focused on maximizing returns for their shareholders. This ownership model means that stockholders have a claim on the company's assets and earnings, making them central to the governance and financial structure of stock insurance companies.

Policy owners, government entities, and mutual members do not own stock companies in the same way stockholders do. Policy owners in a mutual company are the policyholders who have an ownership interest in the company itself, while government entities may regulate insurance companies but do not own them. Mutual members, similarly, refer to the policyholders in a mutual insurance company, who share in the profits but do not have ownership in a stock company.