A shareholder or a stockholder is an entity that owns at least one share of a company’s stock, known as equity. In return, they receive benefits in the form of dividends. In a way shareholders own the company hence they are interested in keeping abreast of the company’s overall financial position. And that’s where financial statements help by providing a snapshot of the company’s financial health at a particular point in time, giving insight into its performance, operations, cash flow, and overall conditions. Shareholders need these pieces of information to make informed decisions about their equity investments, particularly in the event of voting on corporate matters.