Unitholder

Categories: Investing

Most companies have shares. They represent portions of ownership in the firm. Parties who own these shares are known as shareholders. It's, uh...all pretty straightforward.

However, things get a little more complicated with some forms of corporate structure. These other situations have units, rather than shares. They still represent ownership stakes in the firm, but the setup is legally different.

Real Estate Investment Trusts, also called REITs, represent the most famous form of these companies. Parties who hold stakes in these REITs are known as unitholders. The distinction also applies to master limited partnerships, or MLPs.



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