Blockholder


An individual who owns a large block of shares and/or bonds in a company is termed as a blockholder. These owners, in terms of shares, are often able to influence the company using their voting rights that is a part of their holdings. 
Due to the significant block of stocks or bonds held by the blockholder in a company he is considered to be an influential shareholder. And that significant number cannot be defined in specific numbers and a company is alerted of such individuals through Form 13D, which is filed with SEBI when their ownership block in a company’s outstanding shares reaches 5%. 
Common and preferred stock is issued by companies which come along with varying provisions and privileges. They get voting right, which is one vote per common share and can also have other voting rights with other share types. Preferred shareholders do not enjoy voting rights.

Shareholders who accumulate more shares to increase their voting rights in a company and raises concerns about issues they observe running in the company. Such a blockholder is called as an activist. Activist investors own 5% or more than that in a company’s shares and uses their voting rights to voice concerns and lobby for changes in that company. And one of the major sources through which they implement or initiate change is through the board of directors.

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